The terms “fleet management” and “telematics” refer to similar concepts and may even be used interchangably. However, they’re not the same: Telematics refers to the process of collecting data from one source and transmitting it to another, and fleet management refers to the system that gathers and uses that data.
In short, telematics are an essential part of fleet management, but the best fleet management services encompass even more than just telematics.
In this guide, we’ll explain both concepts, as well as any related terms, before covering the benefits and what you’ll need to know about how much all of this costs.
In this guide:
- Fleet Management and Telematics, Compared
- Vehicle Fleet Telematics: Terminology to Know
- What Is the Role of Telematics in Fleet Management?
- Fleet Management vs. Telematics: Costs
- And What About Fleet and Non-Fleet Telematics?
- Finding the Right System for You
Fleet Management and Telematics, Compared
It’s tricky to compare telematics with fleet management, since the two are so entwined. To get started, we’ll have to explain each one in turn.
Digging Deeper – What Are Telematics?
“Telematics” refers to the process of gathering and sending data for long-distance data transmission. Requiring telematics hardware to be installed or plugged into that source, this then records data on location and sends it to another location so it can be remotely recorded.
Depending on the system, this telemetry hardware might send data in real-time, or at set intervals anywhere from every five minutes to once every 24 hours or longer.
And What Is Fleet Management?
A fleet management system refers to the hardware and software that enables fleet managers, or dispatchers, to track and manage their vehicle fleet. This includes dispatching drivers on their optimized routes, as well as logging fuel use, poor safety habits, and upcoming maintenance issues.
With an effective fleet management system, managers can streamline all the core elements of running a fleet, and telematics can be used to deliver most of the data a fleet management system needs. Telematics are needed to track vehicle location, the hours that an engine spends running, collision detection, harsh breaking, and also vehicle speeds.
Certain types of telematics data can be combined with other types to glean even more insights. For example, when a vehicle engine is running but its location is not changing, a fleet management system can determine how long the vehicle is idling. If a manager can get drivers to reduce engine idling, they’ll reduce fuel use.
For more information, check out our full guide to what fleet management systems are.
Vehicle Fleet Telematics: Terminology to Know
The data that a telematics system gathers might be termed, or referred to, as “telemetrics,” and the system itself might be called “telemetry.”
However. people refer to the process of telematics more frequently, especially when used in relation to commercial vehicles. It is the main method of gaining visibility across an entire fleet of vehicles concerning details like engine use, fuel use, and maintenance needs.
A fleet management system is the specific type of hardware and software used to operate a fleet. It’s one part of a larger concept. Transport management is the planning, implementing, and improving of all procedures across the transportation supply chain. This includes vehicle-specific concerns like fleet management, but also covers the monitoring of the number and condition of goods shipped per vehicle. It also covers the carrier rates and services used to transport goods across long distances.
Plenty of fleets operate outside of the transportation industry, but still need fleet management systems. Examples include emergency vehicles such as the ambulance and fire services, as well as other service industries like heating, ventilation and air conditioning (HVAC), pest control, landscaping, or waste management.
Whether they overlap or not, fleet managers, transportation managers, and telematics users all share a similar overarching goal. They use data to maximize their resources while reducing costs to drive higher productivity.
What Is the Role of Telematics in Fleet Management?
Here are the biggest reasons why a fleet needs a fleet management system — all of which depend on telemetry:
Location Tracking
Nearly any telematics hardware will track GPS data, which informs managers of the exact geographic location and speed of all their vehicles. Any good fleet management system will offer a map view that shows all the vehicle locations in (or close to) real time.
Route Optimization
Location telemetrics data can be paired with additional data on traffic congestion and weather conditions. Many fleet management systems can process this data in order to automatically re-route drivers to quicker or more direct trips to their destinations.
Not all systems offer this, however. For instance, GPS Trackit does not have weather or traffic alerts, but the most feature-rich options, like Verizon Connect and Samsara, include both.
Maintenance Scheduling
Most vehicle telematics devices are plugged into a vehicle port, or are hardwired to the engine, and in both cases, they’ll be able to track whether the ignition is on or off, and how many miles have been driven.
With this data, a fleet management system can automatically alert managers when pre-set amounts of engine hours or miles have passed, letting them know the vehicle is due for an oil change, new brake pads or suspension, a tire rotation, or an inspection.
Driver Safety
Onboard telematics can flag certain data points to register harsh driving events such as braking too quickly, turning a corner at too fast a speed, or driving faster than the speed limit on a specific road. Some fleet management systems can gather this driver monitoring data and turn it into automatic alerts that warn managers immediately or use it to generate safety reports.
Motive, as a program, has a great selection of driver safety tools, and even incorporates the data into coaching sessions and a fleet-wide leaderboard.
Fuel Management
Fuel is one of the biggest costs a fleet faces, so collecting telematics data on vehicle idle times can help save money by increasing fuel economy.
Telematics discourages fuel theft or fuel card misuse, since money spent on fuel can be compared against miles driven. Azuga fleet management offers the most complex fuel tracking tools, and even includes alerts that can notify drivers to the nearest or cheapest gas station in real time.
Regulatory Compliance
Nearly all commercial vehicle fleets in the US must meet ELD regulations, though some have exemptions. Telematics data can help fleets meet other regulations as well, including IFTA fuel taxes, which require vehicles to track miles driven per state.
Reporting and Analytics
All the data listed above, and more, can be used to generate weekly, monthly, or quarterly reports. Seeing the data on a board timeline can help managers spot trends that might otherwise be missed. These insights can guide managers when making long-term decisions on business expansion or money-saving precautions.
Fleet Management vs. Telematics: Costs
A full fleet management system offers more features than a more stripped-down telematics system, and so it typically costs more. Fleet management systems might cost anywhere between $20-$35 per vehicle per month, but that monthly bill can rise to over $100 for a feature-heavy system. Less complex telematics systems that collect more limited data may cost between $5-$25 per vehicle per month.
Prices are rarely public for either fleet management systems or telematics providers, so you’ll likely have to contact specific companies for direct quotes. You may also need to commit to two or three-year contracts for the best deal. Our guide to fleet management costs has more to say on this!
And What About Fleet and Non-Fleet Telematics?
Within a fleet industry like freight or delivery services, the term “telematics” almost always refers to the types of telematics that are used in commercial vehicles and those that are designed to work across multiple vehicles. However, in the modern world, telematics can also be used in many other contexts.
First, there are non-commercial motor vehicles like the cars you use to drive to work. If your car has a “check engine” light or an odometer, those are powered by in-vehicle telematics. You might also add other telematics devices, like dash cams, which film the road ahead with time-stamped, GPS-tagged recordings. Some insurance companies might reduce your premiums in exchange for installing a telematics smart box, also called a black box, to record your driving habits and send the data to the insurance company.
Finally, you might use a telematics software that harnesses the detailed sensors in your smartphone, rather than your car engine. This might be a GPS map navigation service or a dash cam app.
Finding the Right System for You
If you want information about your fleet, you need vehicle telematics. A simple system can give you visibility of your vehicle locations and movements.
However, if you operate a commercial fleet, you’ll likely find a full fleet management system to be worth installing. It should be able to handle all aspects of tracking and controlling a fleet, thanks to its own heavy integration with vehicle telematics.
Fuel costs, safety habits, maintenance, and trips can all be streamlined with fleet management – and those bottom-line boosting benefits are good news for any industry, from service and repairs to construction and last-mile delivery.