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You may have heard the term telematics—you may have been told it will make your job easier, and may even be using it without realizing it. You may even know that it is the foundation of modern fleet management. If you want a technical answer to the question what is telematics, it's a system that uses telecommunications and information technology or processing to provide actionable data.

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In the fleet and logistics industry, telematics is considered synonymous with fleet telematics or vehicle GPS tracking telematics systems. By this definition, it is an onboard communication system and applications that talk to each other via the mechanisms of GPS receivers and other telematics devices.

The most common use of telematics in fleet management is vehicle tracking. By combining a GPS tracking system with onboard diagnostics, the exact location of a vehicle and the speed at which it is moving can be mapped.

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  1. Add to Wishlist. MyMiX is the new driver-focused technology platform from MiX Telematics. The primary purpose of MyMiX is to improve driver engagement within an organisation. MyMiX does this.
  2. A fully integrated telematics system that includes dash cams, electronic logging devices (ELDs), route planning, and advanced driver management may cost more upfront but can give pay off in more ROI. And there are systems like MiX Telematics, where you can choose features based on the needs of your fleet.

A telematics system consists of devices installed inside the vehicles. These devices use a cellular network to send information to services that are hosted by the provider or a third-party cloud server. The data can then be accessed from a device such as a smartphone, tablet, or laptop with an internet connection. This is all made possible by the Global Navigation Satellite System (GNSS).

These developments have caused a boom in vehicle telematics and telematics for fleet management. Fleet managers use telematics systems to keep their drivers compliant with the ELD mandate and to help run their fleet operations more efficiently.

How does a telematics system work?

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A fleet management telematics system consists of telematics devices installed in fleet vehicles in order to send, receive, and store telemetry data. It connects to a vehicle's onboard diagnostics system or CAN-BUS port with a SIM card. An onboard modem sends information via a wireless network.

The telematics device collects GPS tracking data and a range of vehicle-specific information and sends it to a centralized server via General Packet Radio Service (GPRS), 4G (soon to be 5G) mobile data and cellular networks or satellite communication to be stored on a server. The server receives the information and displays it through a secure website accessed through tablets or smartphones. A telecommunications company manages the information flow between the vehicle and the telematics provider.

The telematics device can capture information such as location, speeding, harsh acceleration or braking, idling time, fuel consumption, engine health, and more. When reviewed and analyzed, the information can give you in-depth insights across your entire fleet.

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What telematics does

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Fleet management telematics lets you harness the power of data and apply it to your unique business challenges. The most common challenge for fleet managers is knowing the whereabouts of their fleet vehicles and equipment at all times. There are many examples of companies using a fleet telematics solution to deter theft, saving thousands of dollars. Initially, the main benefit of this technology was its ability to locate vehicles and relay that information through a wireless connection virtually in real-time. However, the technology has evolved to offer valuable features, such as safety, efficiency, and savings for your fleet.

For example, if you want to develop a fleet safety initiative with the goal of becoming a safer and more responsible fleet, you can use telematics technology to do so. It can help you address bigger issues such as reducing speeding instances, harsh acceleration and deceleration as well as the number of accidents throughout your fleet.

A fleet telematics system can also give you a significant return on investment (ROI) in areas such as:

  • Improving customer service
  • Cutting fuel costs
  • Reducing operating expenses
  • Increasing efficiencies

What are telematics systems?

When you install a telematics device in your fleet vehicles, you may wonder what is behind all that technology. Picture an extremely intelligent computer that can track and report on almost every detail from speed, braking, and idling to low tire pressure, fuel usage, and more. This information can lead to better monitoring of vehicle health and learning more about driving habits throughout your fleet. You can then use this information to save on maintenance costs, improve fuel efficiency, and create driver training programs.

In order to track assets, information from your fleet vehicles is recorded via a telematics device installed through the CAN-BUS port or OBD II. The device contains a SIM card and modem that enables wireless communication on a cellular network. The final piece is fleet management software that can be accessed through a smartphone, laptop, or tablet.

Origin of telematics

The combination of telecommunication and information processing that we know as telematics was developed in the 1960s for military use to improve communication on the battlefield. The technology we use today came about through three interdependent breakthroughs: Internet, GPS, and machine-to-machine communication. Fleet management applications of telematics took off with the rise of the Internet and the increase in the number of telecommunications networks to transfer data in real-time.

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How are telematics devices installed?

Telematics devices can be self-installed (plug and play) or installed by a technician. Either way, getting up and running can be quick and easy. Their power requirements may vary, some may be battery operated while others may be powered by the vehicle's internal electrical system.

Telematics

Can my fleet use telematics?

Any type and size business with vehicles or assets they want to track can benefit from a telematics system. Here are some industries the rely on GPS fleet tracking and telematics systems:

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  • Trucking and transportation logistics
  • Construction businesses
  • Oil, gas, and mining industries
  • Courier and delivery companies
  • Field sales and other services such as HVAC and plumbing
  • Food and beverage companies
  • Police and emergency organizations
  • Towing companies
  • Food delivery
  • Transit fleets
  • Utilities
  • Other public agencies
  • Landscaping businesses
  • Waste management fleets
  • Food trucks

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Telematics data can empower fleet managers and administrators by giving them the ability to solve their unique business challenges and make strategic decisions.