How fleet telematics can improve performance and safety

Telematics – onboard diagnostics with GPS vehicle tracking –  is making waves in fleet management, allowing commercial vehicle fleet managers to access important information on their vehicles in real time. By integrating telecommunications and informatics, fleet telematics can determine vehicle location, driver behavior, and overall fleet performance. 

What is telematics?

A telematics device is installed in a vehicle to collect and transmit data from the vehicle to the dispatcher. The technology includes GPS tracking, vehicle diagnostics, and wireless communication that sends insights into the vehicle’s operations.

Telematics also monitors a wide range of metrics such as:

• Speed
• Fuel consumption
• Maintenance needs
• Driver habits

With telematics providers, such as WEX, this information gets fed into one platform. Commercial vehicle fleet managers can access the latest data and vehicle-specific information in one central dashboard. 

When paired with your WEX fleet card, WEX premium GPS vehicle tracking helps you:

• Confirm vehicle location and activity at a glance 
• Detect unsafe behavior like speeding, sharp turns, and harsh braking 
• Track every stop and time spent with customers using landmarks 
• Monitor fraudulent behavior with free WEX fuel card integration 

Telematics can help improve fleet performance

According to Fortune Business Insights, the total vehicle telematics market is expected to grow, reaching $170.35 billion by 2032 – a compound annual growth rate (CAGR) of 8.9% from 2024-2032. The value of innovating digital solutions to make fleet management more efficient and secure cannot be overstated. 

The insights drawn from fleet telematics can optimize a variety of tasks, allowing fleet managers to make better decisions for their fleet.

Enhanced route planning

GPS vehicle tracking allows fleet managers to find the best routes with real-time information on traffic, road conditions, and more. With this information, they can choose routes with less travel time and fuel consumption.

Fuel efficiency

Fuel is a significant expense for fleet managers. Telematics can help monitor fuel consumption and identify areas where savings can be made. For instance, by analyzing driver behavior such as idling, harsh braking, and speeding, commercial vehicle fleet managers can implement training programs to promote more fuel-efficient driving practices. The U.S. Department of Energy reports that improving driving habits can lead to fuel savings of 10 to 15%. 

Preventative maintenance

Telematics systems can monitor vehicle health in real time, alerting managers to maintenance needs before they become a serious problem. This proactive approach to maintenance can prevent costly breakdowns and extend the lifespan of vehicles. 

How can telematics enhance fleet safety?

Monitoring driver behavior

One of the primary benefits of telematics is its ability to monitor driver behavior. GPS vehicle tracking devices can track speed, braking patterns, and instances of aggressive driving. Fleet managers can use this data to identify risky driving habits and provide the appropriate training. 

Cambridge Mobile Telematics conducted a study testing the impact of a telematics program on driver behavior. They found an overall positive impact that telematics has on driving habits. In particular, the riskiest and most engaged drivers decreased their distracted driving time by 20%, reduced hard braking incidents by 9%, and decreased speeding time by 27%.

Reducing accidents

By promoting safer driver habits, telematics can significantly reduce the number of accidents. Additionally, real-time alerts can notify drivers of potential hazards, further enhancing safety on the road.

Emergency response

In the event of an accident, telematics can play a big role in emergency response. GPS vehicle tracking allows for the quick location of vehicles, and sensors can detect collisions and automatically alert emergency services. This rapid response can be lifesaving, particularly when driving somewhere remote.

Addressing the challenges associated with fleet telematics

While the benefits of telematics are clear, there are challenges to consider. Common concerns include data privacy protection and an increased need for training and support. However, many of these challenges can be mitigated with careful planning and by selecting a reliable telematics provider.

Data privacy

With the collection of extensive data, privacy concerns are inevitable. Commercial fleet managers must ensure that data is collected, stored, and used safely. Implementing data security measures and being transparent with employees about data usage can help address these concerns. Additionally, many telematics providers, like WEX, prioritize data privacy and security in their services.

Training and support

To maximize the benefits of telematics, ongoing training and support are essential. This includes training drivers to improve their driving habits based on findings from GPS vehicle tracking data and ensuring that fleet managers are proficient in using the telematics software. Partnering with a provider that offers comprehensive training and customer support can facilitate a smoother transition. WEX has a customer service team to provide prompt and helpful fleet support.

How are emerging technologies impacting fleet telematics?

The future of telematics holds even more potential for enhancing fleet performance and safety. Emerging technologies such as artificial intelligence (AI) and machine learning can provide deeper insights into predictive analytics. 

Greater connectivity with 5G 

With the rise of 5G technology, telematic systems may see improvements in connectivity and responsiveness. 5G offers faster data transmission speeds and lower latency – the delay before data transfers. This enables real-time data updates and more precise monitoring of fleet activities. The enhanced connectivity will allow for quicker decision-making and more responsive management.

Advanced data analytics for clear reporting

Advanced data analytics enables commercial vehicle fleet managers to make more informed decisions. By using telematics data with other business systems, companies can gain a greater holistic view of their operations and identify new opportunities for improvement. With WEX, premium GPS vehicle tracking is paired with ClearView data analytics software for reporting.

The integration of GPS vehicle tracking into fleet management represents a huge step forward in enhancing efficiency and safety. As technology continues to evolve, the potential of telematics will only grow, offering even more opportunities for fleet managers to optimize their operations and continue to grow their business.

Learn more on how to better manage your small business:

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WEX speaks the language of small business operators. Whether you’re looking to modernize your insight and reporting efforts, save on fuel costs, or take advantage of the latest GPS vehicle tracking technologies, WEX offers solutions to simplify the business of running a business. To learn more about WEX, a dynamic and nimble global organization, please visit our About WEX page.

Apply for a fleet card today!

Sources:
Fortune Business Insights
U.S. Department of Energy
Cambridge Mobile Telematics

Editorial note: This article was originally published on November 19, 2019, and has been updated for this publication.