What is telematics?

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Vehicle telematics

In the automotive or fleet industry, telematics is typically synonymous with vehicle telematics or fleet telematics. Vehicle telematics is used to describe vehicle onboard communication services and applications that communicate with one another via GPS receivers and other telematics devices. The most common application of this is GPS fleet tracking. This is achieved by combining a GPS system with onboard diagnostics, typically to map the exact location of a vehicle and the speed at which it is moving through vehicle tracking.

Vehicle telematics continues to rise in popularity as a direct result of business demand and regulatory requirements. Fleets leverage telematics data to enhance operational efficiency and sustainability, such as reducing idling, while ensuring compliance with regulations like the ELD mandate. 

How does telematics work?

• A vehicle's location is provided to a vehicle telematics device, such as Samsara's Vehicle Gateway, via a GPS receiver or GRPS. Information is transmitted from the vehicle to a server via a wireless network.

• A telecommunications company manages the flow of information from the vehicle and telematics provider.

• The internet transfers the information from the telematics provider to a computer or mobile device for a fleet manager to access.

• Fleet management for public fleets such as governments and schools use vehicle telematics data to analyze fleet vehicles, vehicle location, service delivery and coverage, driver behavior, community safety, routing, dispatch units, diagnostics, and preventative maintenance so that they can optimize service delivery to their communities and respond to citizens.

The benefits of vehicle telematics

There are a number of ways fleet managers can benefit from integrating a vehicle telematics system into their fleet operations. Topping the list are:

1. Visibility

GPS fleet tracking gives organizations visibility into the whereabouts of their vehicles by monitoring the movement or location of a vehicle through a GPS system. This functionality is one of the most common applications of vehicle telematics and is particularly useful for companies that need to keep track of a fleet of vehicles. This same feature can also be used to track powered and unpowered assets, like trailers or reefers.

2. Maintenance

Most vehicle telematics systems are plugged directly into a vehicle's diagnostic port. This automatically pulls engine data—like fuel consumption, coolant temperature, or engine load—for fleet management teams to easily access and gain insights into vehicle use. This is also a great way for fleet managers to set up a regular vehicle maintenance schedule for their commercial vehicles. Vehicle telematics providers can identify vehicle faults and send notifications so fleet managers can know when to bring a vehicle into the shop.

3. Safety

Because vehicle telematics systems monitor and collect data on vehicles, they can also be a great way to gain insight into driving habits. Fleet managers can also create training programs or individual coaching sessions based on telematics data, such as harsh braking or acceleration, to help increase driver safety on the road and improve driving behavior.

Insurance companies are also starting to use telematics information to accurately assess risk factors and modify insurance premiums accordingly.

4. Cost savings

Telematics can easily reduce fuel costs across a fleet by identifying trends in driver behavior and route performance—insights that can lead to major increases in fuel efficiency. Without visibility into how drivers are performing in their day-to-day, it can be challenging to coach them on fuel efficiency or idling. Certain telematics systems can also connect fleet managers with drivers in real time via messages so drivers can easily reroute in case of heavy traffic or another unexpected road delay.

Watch the video below to see how All Aboard America uses Samsara Vehicle Telematics to reduce fuel usage by 3%, resulting in $140,000 saved in a single year.

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5. Compliance

Because they electronically and automatically track vehicle drive-time, telematics systems can make it easier to maintain ELD compliance. Fleet managers can use telematics systems to track records of duty status and certain providers, like Samsara, even streamline workflows associated with editing, certifying, and annotating Hours of Service logs.

The future of telematics technology

The rising use of telematics in the automotive industry has been a huge turning point for fleet efficiency and safety. As it continues to gain momentum, there are a few emerging trends to keep an eye on in the near future.

Data sits at the heart of telematics, but understanding that data and acting on it can be challenging. Expect to see telematics providers, like Samsara, present customers with intelligent tools to help weed through raw data. Samsara’s data-driven platform provides reports and tools to help customers digest the numbers and turn them into actionable insights.

The unseating of 3G cellular networks is another trend that is likely to see a sharp rise as telematics providers connect to faster 4G or LTE networks. The switch is bound to trigger device replacements in a number of fleets still using 3G telematics systems over a decade old.

In addition, integrating devices, such as combining asset tracking with fleet management, will play a key role in the future of telematics. Asset tracking devices leverage GPS, IoT sensors, and real-time connectivity to provide precise location data, equipment utilization metrics, and maintenance alerts. These advancements not only improve operational efficiency, but also help prevent asset loss and reduce downtime. Samsara's Asset Tag offers real-time visibility, enhanced security, improved efficiency, cost savings, and seamless integration with fleet telematics data, providing businesses with a comprehensive operational overview.

As demand for connected platforms increases, telematics systems will also look to improve integration capabilities with other services using APIs. To create a more holistic fleet management system, fleet managers will want a telematics provider that seamlessly integrates with other parts of their business. Samsara’s open architecture enables integration opportunities with a variety of partners in transportation, including payroll applications and transport management systems.

Artificial intelligence (AI) is another emerging technology that can multiply the benefits of telematics. AI-enabled telematics solutions have revolutionized the way organizations in physical operations work, enabling them to enhance safety, maximize efficiency, and empower their employees. In Samsara’s recent State of Connected Operations Report—Smarter, Faster, Safer: The AI Revolution in Physical Operations—100% of organizations currently using AI report experiencing benefits, including improved safety (45%) and employee productivity (42%). By leveraging AI, modern organizations are taking their telematics to the next level.

Improving operational efficiency with Samsara’s Vehicle Telematics solution

Samsara is a leading fleet telematics provider that helps with safety, compliance, and efficiency. With GPS tracking for vehicles and assets, ELD compliance, and more, Samsara is a complete telematics system that helps create a unified fleet management system. 

DHL Group is one of the largest logistics companies worldwide, serving more than 220 countries and territories. DHL Supply Chain, a division of DHL Group, oversees supply chains in more than 50 countries for over 1,400 customers. 

With the Samsara Connected Operations Cloud, DHL consolidated seven separate point solutions — for dash cams, telematics, compliance, trip management, DVIRs, trailer tracking, and speed monitoring — into one platform, and integrated Samsara with their critical business systems. Using Samsara’s Vehicle Telematics solution, DGL gained reliable diagnostic data, real-time alerts, and automated maintenance workflows. This enabled them to close communication gaps and accelerate maintenance response times — keeping their vehicles on the road serving customers. In addition, with the Samsara Connected Operations Cloud, DHL has a platform that supports their transition to an EV-focused future.

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Want to learn more about Samsara’s fleet management software? Explore our Vehicle Telematics solution, and get in touch for a demo or free trial today.