What is Telematics and How Does it Help Fleet Businesses?


Telematics Software might sound like an intimidating term to understand, but it is really simple. Let us break down the term into two parts, telecommunication and informatics. In simple words, telematics is the long-distance communication of data. This transfer of information can be between various kinds of systems.

When we look at a fleet management system that is responsible for optimising vehicles, telematics plays a big role in this process. How? Before we address this question, let us understand the need for telematics in the fleet management industry in the first place. Read the following section to know more.

How is Telematics Useful in Fleet Management?

As we mentioned above, telematics is the transfer of data over a long distance. Most fleet management systems operate with the data they receive from GPS trackers and vehicle OEMs. But have you ever wondered about these data-transferring methods? Yes, via telematics!


Much like humans interact with each other, vehicles also have a language of their own. They use this language to communicate with the system and amongst themselves. Thai data is what lays the foundation strategies of any fleet business. Let us understand this with the help of an example.


Imagine vehicle A belongs to a fleet business. The GPS tracker sends the server data of its real-time movements. It is the server that decodes this data and presents it in the form of insights. If the vehicle is changing location too rapidly, its speed can be considered above the limit. This triggers the alert for overspeeding. Thus, managers can investigate and rectify the situation. 

What are the Benefits of Using Telematics in Fleet Management? 

Now that we understand the need and use of telematics, let us see how it is applicable in the fleet management industry. Fleet management requires data that highlights the loopholes and pain points of fleet operations. This is where telematics comes into play. Transferring data from the vehicle to the fleet management system? Telematics is the way to go! 


Data that helps managers and systems deduce actionable insights include:


  • Location Data: This allows managers to trace their vehicles in real time. Thus, they can ensure that the drivers are in the correct location at the correct time. This reduces any chance of tie theft and increases the productivity of the fleet business. 

  • Sensor Integration: Data collected by the sensors integrated with the fleet management system helps in the optimisation process. This can include fuel sensors to monitor fuel consumption, an odometer for speed monitoring, and so much more. All the data thus collected helps managers formulate strategies to resolve issues pointed out.

  • Video Telematics: Moving on from traditional communication in textual data, video telematics incorporates media into this data exchange. Managers can see the footage of drivers' and vehicles’ activities. They can detect any signs of distraction and other dangerous activities using this footage.  

In the End

Telematics is the need of the hour. It is proof of how far technology has come, helping the fleet management software industry grow and become more efficient. It shifts this process to be more information and data-oriented. Automation also helps boost the manager’s productivity, helping the fleet business become more profitable.


Hundred problems, one solution indeed!


Wondering which telematic system is the right choice for you? Meet TrackoBit, the leading fleet management system in the market. It helps fleet businesses optimise their operations with the help of solutions aimed to collect data and present insights. Request a demo and see how the system works and is compatible with your business!

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