While customers want high-quality services and products at minimal costs, companies want their profit margins to be as high as possible. But for a company to progress, it has to meet its customer demands or else be left behind in the race.
Vehicle telematics brings together the best aspects of information technology and telecommunications onto one fleet management platform to help the companies meet their consumer demands without compromising their profits.
The trucks that operate in the United States of America (USA) move about 71.4 per cent of the nation’s freight in terms of weight, according to the American Trucking Association (ATA). Furthermore, with millions of trucks being registered every year and thousands of new drivers being employed, it becomes imperative to have a system that facilitates error-free communication as well.
Over a few years, vehicle telematics (a.k.a. fleet telematics) has evolved significantly to support revenue generation, improve safety, and reduce operational costs for logistics companies.
Here are six ways by which vehicle telematics in fleet management is helping your company reduce their costs:

1. Enabling Cooperation

By bringing the customers, truck operators, owners, fleet managers, and drivers onto a single platform to share all necessary information and carry out communication in a concise and error-free manner, telematics has become indispensable.
This enables vehicle telematics to streamline all company operations and optimize the overall productivity of its employees through collaboration.
Fleet managers can quickly communicate to all the involved personnel regarding any updates or alerts. The consumers can also easily keep tabs on their shipment.
Additionally, fleet managers can readily monitor the behaviors of their drivers and their driving patterns, which they can analyze and come up with appropriate training sessions to optimize their driving.

2. Reduce Maintenance and Repair Costs

Fleet telematics will help your company reduce maintenance and repair costs.
Using the industrial internet of things (IIoT) tools, fleet managers can be alerted about problems ever before they happen. This helps to accurately schedule preventive maintenance sessions for your fleet’s vehicles and avoid more significant damages that whose repair costs would be significantly higher.
With the help of devices like asset trackers and electronic logging devices (ELDs), prevention of crashes can be easily achieved by looking into the real-time diagnostic data they provide to the users.

3. Improve Driver and Road Safety

Telematics tools and fleet management systems like intelligent dash cams improve driver safety and help to prevent road accidents.
Using computer-based vision and high-quality sensors, these high-performance embedded artificial intelligence (AI) dashcams help drivers by assisting in their driving in real-time. Through built-in speakers, the dash cams can coach the drivers in real-time, thus continually improving their driving skills.
Drivers are often the first ones to be blamed when they are involved in a road accident. With the help of dashboard cameras that record high-quality HD video and are connected to the internet via cloud computing, drivers can take solace in knowing that they would be exonerated if it is not their fault.
The reduction in road accidents is beneficial to a trucking company in more than one way:

  1. The risks of facing and fight a lawsuit are reduced.
  2. The number of insurance claims by the drivers will be reduced.
  3. The repair costs of fleet vehicles will be decreased considerably.
  4. The company will save the compensation money that would have otherwise had to be paid to the client for the wrecked goods or to settle lawsuits.
  5. The company’s CSA scores will be well-maintained, and public relations will be upheld.

4. Generate Reports Automatically

Using fleet telematics, you can quickly create completely customized reports for your fleet and its drivers.
The valuable data provided by fleet tracking reports help in optimizing fleet performance by promoting healthy competition among drivers, lowering fuel costs, and also ensuring compliance with federal rules and regulations.
The diagnostic information obtained through various onboard industrial IoT devices are readily made available on an integrated dashboard accessible through the cloud and provides advanced analytics to help you make highly educated decisions regarding your fleet’s vehicles. These analytics help you generate insightful customized reports with just the data you want to emphasize on and store them across various devices in easily shareable formats.
Furthermore, fast report generation will reduce paperwork and also streamline the IFTA reporting process. Check out this link to know more about what is.

5. Maximize Security and Minimize Theft

With the help of advanced and reliable high-quality industrial IoT devices, your company can potentially save thousands of dollars every year by strengthening its security.
GPS fleet tracking devices and asset trackers help you by providing real-time visibility into the whereabouts of your assets.
An integrated platform helps your control all the actions of your drivers remotely by setting up geofences. These devices can quickly alert owner-operators and fleet managers by sending notifications to their mobile or desktop devices at any time under predefined circumstances. These geofence alerts help you locate and recover stolen assets quickly and hassle-free while aiding law-enforcement seamlessly.
With high-speed Wi-Fi capability built-in, you do not have to worry about lags or delayed communication.

6. Increased Productivity

Vehicle telematics help shipping and logistics companies get more out of less. With the help of route optimizations and geofencing, the drivers will have lesser distractions, and all deliveries can be completed quickly while utilizing lesser fuel.
Efficient route planning eliminates multiple trips and saves a lot of fuel for your company in the long run. Additionally, vehicle telematics also enables re-routing on the fly. For example, if an order is canceled, the fleet manager can immediately remove the stop from the list of deliveries, and the software quickly re-routes the driver to the next stop.


By reducing risky driver behavior, improving safety and security for the public, vehicle telematics has earned an excellent reputation.  In a nutshell, telematics continues to save trucking companies millions of dollars every year, improve their operations, and have become indispensable over the years.
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