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Vehicle Telematics Systems: How Do Vehicle Telematics Systems Work?

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The turning point for every fleet business is getting a powerful fleet management system. With most fleet management systems there’s an aspect of telematics, but what does it mean? Telematics are usually integrated with fleet management software to retrieve and process information from the vehicle. This top-tier technology makes the fleet world go round, as it permits the ability to receive and view data on things like deliveries for example. 

Today we will break it down for you to better understand and see how our platform sets us apart.

In this article, you will:

  • Get an understanding of what vehicle telematics is
  • Learn about common vehicle telematics systems
  • See the role of telematics in different fleet industries
  • Gain insights into the future of telematics
  • Discover powerful Cartrack telematics solutions

What is vehicle telematics?

What’s the first thing you think of when you hear the word telematics? If you’re thinking big trucking technology, you’re right. However, it goes beyond that, we use telematics in our everyday lives. For example, if you’ve watched your food delivery guy map his way to your house then you’ve seen telematics at work.

Telematics is a term that combines two words: telecommunications and informatics. Telecommunication is the transmission of messages and signals over a long distance using electronic equipment such as a telephone or radio. Informatics is the study and design of information systems, such as computer systems. In most cases, the term describes the digital monitoring of commercial vehicles.

Fleet management can become simpler, less stressful and more successful when telematics is introduced. How does it work? Fleet telematics collect data using GPS technology, sensors and a vehicle’s engine. With this, fleet operators receive all the information they need to manage their vehicles.

The breakdown — how do telematics systems work? 

The devices gather a range of data using GPS technology, sensors and engine diagnostics. This data provides fleet operators with the information they need to track assets and manage all vehicle operations. The data offers insights into vehicle maintenance, location, driver behaviour, and fuel consumption. 

Here are the three main building blocks of a telematics system:

  1. Telematics control unit (TCU): The telematics control unit is a crucial component of the telematics system. It’s hardware that’s installed in the vehicle and serves as a link between the vehicle and the server. It collects data such as vehicle diagnostics data, location and speed through various channels and uses cellular or satellite networks to connect with the telematics server. 
  2. The telematics cloud server: This is the central hub of the telematics system. It receives processes and stores data from the TCU. Consisting of a web server and an application server. 
  3. The end-user application: The data stored in the telematics cloud server is then accessed by the end-user which in this case would be a fleet manager, via a desktop or mobile application. The data is presented in a way that the fleet manager easily understands what is happening.

The role of IoT in fleet telematics 

The Internet of Things (IoT) device is often confused with the telematics system. They are linked but not the same thing. An IoT device connects physical devices to the internet. In simple terms, it can be integrated into tools such as industrial equipment to source out data, and this is why it works so well with telematics. 

The integration of telematics and IoT devices has been a game changer in the world of fleet management, it has made telematics more affordable and shifted the focus from just tracking vehicles to engine performance, driver behaviour and locating assets. 

The benefits of vehicle telematics systems for fleet businesses

There are various benefits to implementing vehicle telematic systems in fleet businesses, let’s take a look at what telematics can do for you:

  • Live-location updates: Telematics connect with the GPS tracking device and a wireless data terminal of the IoT to transform vehicle data into management reporting tools and mapping software. This makes it easier to see if drivers are taking the correct routes, how long they stay in one place and which driver should be dispatched to speed up the process.

  • Enhanced driver safety: Fleet managers can now see how drivers behave. Telematics systems allow fleet managers to spot when drivers speed, take harsh corners, or do harsh braking. Drivers can receive coaching on safer driving habits. Aggressive driving can increase fuel consumption and accelerate vehicle wear and tear.

  • Improved communication: Allows two-way communication between drivers and fleet managers. Dispatchers receive live updates and can instantly communicate with drivers on any change. This also helps customers receive accurate information on the updated estimated time of arrival.

  • Vehicle diagnostics: Predictive analytics in vehicle diagnostics provides fleet managers with insights into engine performance. With this information, fleet managers can identify when their vehicles or equipment needs repairs. This ensures that only vehicles that are in good condition are assigned to jobs and those in need of maintenance are taken in for repairs, minimising disruptions and improving service quality.
     
  • Less paperwork: Record keeping has never been easier. Telematics systems simplify all administration processes by having all fleet-related data on one platform. This saves fleet managers time and helps them keep track of their fleet’s administration. For example, businesses can meet compliance and safety obligations without going through strenuous paperwork by automatically tracking essential data such as vehicle maintenance schedules and licensing.

  • Fuel efficiency: Fuel takes up the majority of a fleet’s budget and IoT devices with telematics capabilities assist fleet managers in monitoring fuel consumption. They receive real-time updates on driving habits that drain fuel such as harsh braking, speeding and long idling. By addressing these issues, fleet managers can save on their fuel budget.

  • Competitive advantage: Stay one step ahead of competitors by utilising the up-to-date data you’ll receive on the daily activities of your vehicles and drivers. Clients will be satisfied with your services, leaving you with good reviews and recommendations, therefore growing your business beyond what you could have imagined.

Vehicle telematics in action for different industries

Telematics can be used in almost any industry that uses vehicles, machinery or mobile assets. Let’s take a look at how specific industries might utilise telematics:

Cold Chain

Telematics technology has greatly impacted the transportation of temperature-sensitive goods such as seafood or fruits and vegetables, in long-distance trips. The real-time monitoring of these goods ensures they are fresh throughout the journey until they reach their destination. This is done through temperature sensors that work with telematics and are strategically placed to measure and record temperature levels at different points accurately. Through this powerful tool, fleet managers receive alerts when there are sudden drops or rises in temperature.   When cargo doors are frequently open and shut this can cause temperature fluctuations. Cargo door monitoring sensors are integrated with telematics to instantly detect when doors open and close. 

Construction

Fleet managers need information from trucks, excavators and all other equipment. They need to know when vehicles arrive on site, how long it takes to complete tasks such as mixing concrete, the health of the equipment and the location of the equipment to ensure that the equipment does not go ‘missing’. When incorporating telematics and GPS technology into your construction business, you’ll know where your vehicles and machinery are at all times.

Sensors provide fleet managers with insights into operational patterns, equipment performance and any potential issues with the machinery. 

Emergency services

Driving an ambulance or other emergency vehicle poses many dangers. Telematics help monitor driver behaviour such as unnecessary speeding when there is no emergency. They also work with specialised sensors to alert managers when sirens go off, ensuring they are used only during emergencies. Moreover, emergency vehicles can't afford to break down during a shift because someone’s life might be at stake. Through telematics data, vehicle diagnostics are assessed so no service dates are skipped and emergency vehicles remain in good health. Lastly, fleet managers need to know if vehicles are at their designated stations at all times, through GPS technology and telematics, emergency service fleet managers can easily access the location of each vehicle at any time to ensure a faster response time.

Waste Management 

If a waste collection truck doesn’t show up for its routine pick-up, it’s not only an inconvenience to you but also has a bad impact on the environment. With telematics and GPS tracking technology, waste management companies can avoid breakdowns and plan more efficient routes for their trucks. Additionally, fleet management vehicle cameras play a vital role in waste management compliance. They work with telematics systems to provide footage and supporting vehicle data of daily waste collection activities, such as ensuring that waste collectors are properly disposing of and recycling waste materials.

Agriculture

GPS tracking and IoT technology in the agriculture and farming industry enable farmers to make calculated decisions through the creation of detailed digital field maps. This helps them in many ways such as the tracking of ploughing distance to reduce resource wastage. The location of farming vehicles and equipment can be seen at any time to ensure there is no theft. Furthermore, through the use of sensors, real-time water and fuel tank levels can be tracked so farmers know which trackers need fuel or when water storage tanks need a refill.


Insurance

Insurers use telematics data to review driver behaviour and determine the risk. Fleet businesses that use telematics to improve driving habits and heighten driver awareness can make long-term savings on insurance premiums through reduced crashes and fewer claims. 

The future of vehicle telematics 

Telematics technology is advancing by the day and will continue to expand. Singapore is one of the smartest cities in the world and telematics play a vital role in the maximisation of the efficiency of urban infrastructure. Some key trends include:

  • Automotive biometrics vehicle access system - This can be in the form of facial recognition, fingerprints, or voice recognition. 
  • The integration of AI and predictive analytics - Generative Artificial intelligence (GenAI), which already generates images, text and videos; could be used to create realistic traffic scenarios for testing and training purposes. 
  • Enhanced connectivity with 5G - This will allow vehicles to communicate with each other and other applications. It also could improve the way we communicate with our vehicles.

How can our telematics solutions boost your fleet’s productivity? 

Case Study: Island Concrete

Here’s a story of how we helped one of the oldest and largest ready-mixed concrete suppliers in Singapore — Island Concrete.

Island Concrete supplies ready-mixed concrete to various customers in Singapore. Their concrete batching plants can supply more than 3 million cubic metres of quality concrete annually. Now that’s a lot and it can come with major complications.

Their main challenge was that they never knew exactly where their concrete mixers were at any given time, they had no system in place to confirm whether their loaded mixers arrived or departed various job sites. This made it difficult for them to assist drivers experiencing delays and update customers during the delivery process. These issues highly impacted their productivity and efficiency.
 

How Cartrack's telematics system has helped them: 

  • Our GPS tracking and mapping features allow Island Concrete to see their mixers’ live location, ensuring concrete is delivered on time to customers. This also helps managers quickly identify delays without having to call drivers directly. Fleet managers and dispatchers can check in with drivers and resolve any issues encountered while keeping customers updated throughout the delivery process.

  • Our geofencing feature also helps the team better manage and improve delivery times as they manage to set virtual fences around various delivery sites so they can receive alerts the moment their mixers enter or exit these areas. With this feature, they can see if drivers arrive on time and deliveries are taking place accordingly.

  • Geofencing also provides managers with reports on daily vehicle activities so they can see when drivers might be unproductive such as spending unusually long periods offloading cement. This also helps managers see when the dispatch of cement is outside the allocated geofences, which could be a sign of possible cement theft. 
  • Overall, thanks to Cartrack’s platform, customers receive their cement on time, allowing them to plan their activities on-site, such as having their mixers ready when the cement is delivered, so they can continue mixing the cement. 

Why Cartrack:

“We are extremely pleased that Cartrack Fleet Management gives us the capability to view fleet information in real-time. It provides insights on our fleet and improves dispatch efficiency for our concrete mixer trucks to ensure our ready-mixed concrete is delivered on time.” 

- Goh GJ, Senior Operation Manager | Island Concrete

Unlock futuristic fleet solutions with Cartrack

We are the industry leaders in vehicle telematics, with years of experience and plenty of innovations. Here are some of the things we can help your business with:

  • GPS Live- tracking
    Stay in the loop and track your fleet vehicles in real-time with Cartrack's GPS live tracking system. Access satellite or smart map views of your fleet vehicles or assets, and customise your map overlays to best suit your needs. 

  • Geofence
    Create virtual boundaries around areas you would like your drivers to avoid or areas you would prefer your vehicles to operate in, and receive alerts the minute your vehicles enter or exit those areas.

  • MiFleet
    Secure your fuel savings by using our cost management software — MiFleet.  This software helps you quickly detect fuel theft by validating transactions with vehicle telematics data such as fueling location, litres put into the vehicle and tank capacity. You will get alerts whenever there is suspicion of fuel card theft or fraud, allowing you to investigate and resolve the matter.

  • Route Optimisation
    Use real-time tracking and vehicle mapping technology to find the best order for drivers to complete tasks. This feature helps you create efficient job routes that will minimise travel time, reduce fuel consumption and avoid delays.

  • AI Multi Vision
    Boost driver safety with our AI Multi Vision camera solutions. With this, drivers get real-time audible alerts whenever distracted behaviours such as fatigue, yawning, cell phone use, and smoking are detected. This allows drivers to quickly correct their behaviour and avoid fatal crashes.

Let us make your fleet profitable with our smart technology

Put your trust in Cartrack, our tools give you all the support you need to drive your fleet business to success. Contact us today!

Vehicle telematics systems are essential for smooth fleet operations - see how telematics technology works and how it can benefit your business.