What is Telematics? The Ultimate Guide for Fleets

In order to supply you with this data, Omnitracs Telematics uses a combination of GPS, and other telecommunications components, to transmit vehicle-specific data like location, fuel consumption, and vehicle speed.

Using a special sim card, and modem-based telecommunications, an Omnitracs telematics system relays information about a single truck to a cloud-based server which can be accessed via browser.

But how does telematics actually work? How is this information collected?

In order to understand how data is collected and transmitted we must first gain an understanding of the three main components required for telematics, GPS, a Telematics device commonly referred to as a "black box," and a modem/server where complex data is downloaded, stored, and distilled into usable information.

Think of GPS as the "where and when" and telematics as the "who, what, why, and how."

Telematics supplies detailed information about what your fleet is doing over time by supplying you with vital performance metrics. GPS can tell you where a truck is on its route, but telematics can tell you whether the truck is parked and turned off, or idling while a driver is inside making a delivery.

Similarly, GPS can give you a good indication of how long a driver took to complete their route, whereas Telematics can help you optimize the route for next time.

GPS is an important piece of the telematics puzzle, and telematics requires GPS as a pivotal piece of the overall data sent back to the hub about a particular truck.

Without GPS, telematics would not be able to plot data with precision, leaving a large gap in knowledge and understanding of any particular truck and its driver.

As telematics applications have evolved over the past few years, so have their capabilities, allowing telematics to now be an easily integrated system with numerous applications. Some integrations include ELD, Dash Cams, and even Route Optimization.

Integrating a telematics system with various platforms can allow your fleet strategic advantages in efficiency and profitability. Additionally, fleet telematics helps with things like maintenance and fleet management, making telematics an appealing option for companies in need of a fleet management solution.

The many benefits of telematics include productivity, safety, compliance, fleet optimization, and sustainability, all accessible through one singular Omnitracs telematics fleet management solution.

Telematics vehicle tracking not only gives you valuable information about your fleet and your drivers, but it also helps you save money long-term.

For example, a telematics vehicle tracking system can help you streamline and optimize driver routes through benchmarking. By applying past data to current results, you can reduce your overall fuel costs, minimizing your overhead and increasing your bottom line as a result.

Plus, valuable insights and real-time alerts given to your dispatch center allow you to coach drivers where needed, helping you reduce wear and tear on vehicles over time.

If a driver is prone to harsh braking or long periods of idling, a telematics solution will provide you with that data. Not only will this data provide you with an opportunity for coaching, but it will also help you take proactive steps to ensure that the truck receives maintenance sooner than it might otherwise would have.

Finally, a telematics solution helps your fleet in real time. With an Omnitracs telematics monitoring solution, you can set up alerts for individual trucks. Is a truck idling for too long? Send out a text message notifying the driver so they can adjust their strategy in the moment.

With Omnitracs telematics, your fleet is protected, and your drivers are better equipped to take appropriate action. If you’re looking for a way to improve performance, protect your investment, and enhance your bottom line, then adding telematics is an absolute must.

• Productivity – Telematics provides real-time data and insights on various aspects of operations, such as vehicle location, driver behavior, fuel consumption, and maintenance needs.
• Safety – Telematics safety offers several benefits, including real-time monitoring of driving behavior, automatic crash notifications and emergency response, driver coaching, and targeted training, and vehicle maintenance to ensure vehicles are in optimal condition, reducing the risk of breakdowns or accidents caused by mechanical failures.
• Fleet Optimization – Telematics enables businesses to monitor and track their vehicles' location, route efficiency, and traffic conditions allowing businesses to better allocate resources based on real-time data. Telematics also maximizes operational efficiency resulting in time and fuel savings.
• Compliance – Organizations can leverage data collection, monitoring, reporting, and documentation to enhance their ability to achieve and maintain compliance with a variety of industry-specific regulations.

• Insurance Risk Assessment – Telematics enables insurers to move away from traditional rating factors in favor of a personalized, data-driven assessment. By leveraging real-time information about driver behavior, telematics helps insurers assess risk, manage claims, and reduce fraudulent activity.
• Integration – Telematics can be integrated with various other technologies and platforms like fleet management systems, navigation and routing applications, and vehicle diagnostics and maintenance systems, to enhance their functionality and provide additional value. Additionally, the flexibility of telematics integrations allows for customization and tailored solutions based on specific industry needs, operational requirements, and business goals.
• Sustainability – Telematics contributes to sustainability efforts by promoting fuel efficiency, eco-driving practices, and optimized routing, allowing fleets to use proactive maintenance and carbon footprint tracking to reduce their environmental impact, achieve sustainability goals, and align with global initiatives aimed at addressing climate change.
• Automated IFTA Reports – Automating IFTA reporting using telematics systems like Omnitracs allows fleet operators to improve accuracy and streamline processes during the reporting process to ensure compliance with fuel tax regulations across multiple jurisdictions.

While telematics is currently being used primarily in commercial vehicles, the potential integrations of telematics are one of the reasons telematics is such a fascinating subject. Not only does telematics provide data-driven analysis to enterprises as an opportunity to refine their methodologies, but it also provides greater connectivity within the global economy.

Telematics systems can be integrated with various other technologies and platforms to enhance their functionality and provide additional value. Here are just a few examples of telematics integrations:

Fleet Management Systems: We've kind of already covered this one, but just to recap, telematics systems can be integrated with fleet management software to provide a comprehensive solution for tracking and managing vehicles. This integration allows for real-time monitoring of both driver and truck, route and fuel optimization, and real-time alerts for maintenance and repairs, all within a centralized platform.

Navigation and Routing Applications: By combining GPS data from telematics systems with mapping and traffic data, drivers can receive accurate and up-to-date directions, avoid congestion, and reduce travel time. Pretty cool right!? When telematics data is integrated with navigation and routing applications dispatchers and fleet managers can monitor the progress of vehicles and provide real-time instructions or rerouting if needed.

Vehicle Diagnostics and Maintenance Systems: Monitoring vehicle health is one of the main benefits of telematics, but its integration with diagnostic and maintenance platforms is what allows technicians to diagnose a problem before it arises. It's almost like looking into the future, except it's real people taking timely action to prevent breakdowns and reduce downtime.

These are just a few examples of how telematics systems can be integrated with other technologies and platforms, but it's clear that the flexibility of telematics integration allows for a wide variety of tailored solutions based on operational needs.

While the history and evolution of telematics can be traced back several decades, starting with early developments in vehicle tracking and communication technologies, telematics as we know it really didn’t begin until the early 2000s.

The early 2000s marked a significant shift in telematics with the integration of wireless communication technologies. This allowed for real-time data transmission and remote communication between vehicles and centralized systems, which remains the basis of modern telematics systems.

With the introduction of cellular networks, mobile data connectivity, and more powerful computing devices, telematics expanded and the capabilities of telematics systems increased to a point that they could serve complex purposes like fleet management. Although telematics in its early forms of fleet management was impressive, it was still rudimentary compared to what it offers today.

Finally, the rise of the internet gave telematics a new wealth of resources like sensors, cameras, and other connected devices, enabling features like advanced driver assistance systems (ADAS), vehicle-to-vehicle (V2V) communication, remote control and monitoring, and integration with mobile apps.

Today, telematics is an integral part of various industries, including transportation, logistics, insurance, automotive, and fleet management. It continues to evolve with advancements in connectivity, computing power, data analytics, and emerging technologies and telematics plays a vital role in improving operational efficiency, safety, sustainability, and user experiences across a wide range of applications.

Many believe that the new rise of artificial intelligence will once more unlock the doors of telematics and further increase our ability to use the data-centric science of telematics as a way to increase productivity and connectivity in ways that were previously unimaginable.