Combined with the technology delivered by GPS tracking, telematics systems provide fleet managers with critical insight into the status of company drivers and vehicles. From a base station, fleet managers can determine where a vehicle is located, as well as how the driver is operating it. The data generated from telematics systems help fleet managers choose the most efficient routes and decide whether drivers require additional safety training.
Telematics systems have emerged as one of the essential tracking tools for companies operating in the transportation industry. Fleet managers can combine the technological features of a telematics system with advanced fleet management software to make well-informed decisions that reduce travel times and thus, decrease the costs associated with transporting products.
Fleet managers can install telematics systems in virtually every type of contemporary commercial vehicle.
How Do Telematics Systems Work?
The technology used to develop telematics systems sends information from remote locations over considerably long distances. With the capability to reach drivers operating vehicles hundreds, if not thousands of miles away, fleet managers improve the logistical coordination with drivers operating large commercial vehicles throughout the United States. Telematics technology combines two scientific principles, which are informatics and telecommunications. Informatics represents the practice of processing information, while telecommunications remotely sends information through different communication channels.
Telematics systems typically work with the following components:
- Accelerometer
- SIM card
- Engine interface
- Input/Output interface
- GPS tracking device
- Fleet communication software system
How Do Fleet Managers Benefit from Using Telematics Systems?
Integrating technology into a transportation company’s fleet tracking system requires choosing technology that complements current capabilities. Telematics systems represent the ideal technology to incorporate into tracking systems that include GPS tracking and fleet communication software capabilities. Seamless integration in a tracking system is just one of the many benefits delivered by telematics systems.
Improved Efficiency
We already mentioned the benefit of efficiency, but it bears repeating. Telematics technology works with GPS tracking to monitor the location of every vehicle in real-time. Because a fleet manager receives real-time location data, drivers follow more efficient routes to avoid traffic congestion and any construction work that has stalled vehicles. Following more efficiently designed routes allows drivers to reduce delivery times and significantly cut down on fuel consumption.
The bottom line is an improvement in efficiency translates into a dramatic increase in productivity.
Lower Operational Expenses
During an era of record fuel prices, a reduction in fuel consumption provides transportation companies with substantial savings. For example, let’s say your company needs to transport produce from Kittery, Maine to a restaurant located in Portland. The company’s telematics system in conjunction with GPS tracking detects a major accident on Interstate 95 near Kennebunk. Instead of taking Interstate 95 into Kennebunk, your drivers choose an alternative route that saves your company both time and money.
Ensures Proper Maintenance
With a telematics system, a fleet manager receives information at a remote location that identifies vehicle maintenance issues in real-time. This allows drivers to take prompt action, which prevents a minor maintenance issue from developing into a costly, major maintenance issue. Another helpful feature of telematics systems is referring to hours-of-service information to discover when a vehicle requires routine maintenance. For example, when one or more tires have reached the point when they need to be replaced, a telematics system notifies the fleet manager in real time concerning the maintenance task.
Enhance Driver Safety
Accidents unfold outside of the workplace, which is a common theme for drivers that spend the vast majority of their working hours on the road. Telematics systems analyze driver behavior to recommend when the time has come to take a break or pull over for the day to rest. Fatigue represents one of the most common causes of truck accidents, especially for long-haul drivers that spend all day trying to get from point A to point B.
Better Customer Support
A customer calls to inquire about the status of a delivery. Before telematics systems integrated with GPS tracking technology, determining the status of a truck involved providing estimates instead of real-time, accurate answers. Telematics systems have allowed fleet managers to provide much better customer support for virtually every logistical question posed by customers. The ability to avoid traffic congestion via telematics technology also has improved the customer service experience.
What is the Future of Telematics?
As a relatively new technology for fleet management, telematics systems have become an integral part of the investments made by companies operating in the trucking and transportation industries. Improving the efficiency of route management, which leads to substantial cost savings, typically more than covers the financial investment made in installing and managing telematics systems.
As technology continues to advance with the introduction of the ELD mandate and electronic logging devices, the trucking industry should continue to benefit from incorporating telematics systems into fleet management programs.
There for You: Acadia Insurance
At Acadia, we’re all about helping businesses throughout the Northeast thrive. Our mission is to provide superior service and product as close to you as possible, providing you with the backing you need to proceed with confidence.
We understand what you want most from your insurance is security and peace of mind. That means knowing you are backed by an insurance company who will support you every step of the way to help you protect your business.
With Acadia, not only can you get coverage tailored to your needs, but you will also receive support from dedicated claims professionals to guide you through the claim process in the event of a loss. That way, you know exactly what to expect. Knowing your claims professional by name and a hand shake – that’s “Closer Coverage”. Get to know more about how we work and find an agent near you by going to the Find an Agent section on our public website (www.acadiainsurance.com).
Acadia is pleased to share this material for the benefit of its customers. Please note, however, that nothing herein should be construed as either legal advice or the provision of professional consulting services. This material is for informational purposes only, and while reasonable care has been utilized in compiling this information, no warranty or representation is made as to accuracy or completeness. Recipients of this material must utilize their own judgment in implementing sound risk management practices and procedures.
