What Is Fleet Telematics? 

Introduction

Imagine describing GPS to a trucker from the 1950s — it would sound like a miraculous technology. Then add on the layer of the Internet. But most of us don’t think twice about logging into Google Maps to get from point A to point B.

With the advent of the fifth generation of broadcast cellular networks, the possibilities for fleet mobile integration seem endless. Dashcams and routing apps are just the beginning. As the field evolves, we can expect managers to gain access to ever more granular tools for optimizing their fleet operations.

Defining Fleet Telematics

The precise definition of fleet telematics is any system that combines telecommunications and informatics technology. Fleet telematics systems collect, store, analyze, and broadcast data from multiple sources, giving managers a bird’s eye view of their assets.

Systems wirelessly transmit GPS location data and live video feeds, vehicle diagnostics, or other forms of data.

Wikipedia defines vehicle telematics as “the convergence of telecommunications and information processing.” It states that “GPS navigation, integrated hands-free cell phones, wireless safety communications, and automatic driving assistance systems are all” examples of technology that fall under the telematics umbrella. [1]

Fleet telematics systems are usually purchased or rented by businesses, as implementing a home-grown setup requires specific engineering knowledge. Organizations usually turn to mobile fleet management apps or to business-to-business providers offering all-in-one installation and monitoring packages.

Because the field is closely linked to the telecommunications industry, some major players in broadcast cellular networks also offer fleet management services incorporating fleet telematics.

How Does A Telematics System Work?

Each fleet telematic system is unique, depending on which provider offers it, whether it is app-based or employs a proprietary piece of hardware, and what the needs of the end-user organization may be.

That said, the majority of fleet telematics systems are arranged around the following setup:

• A device that collects data or information. This could be video data from a dashcam, engine diagnostic data from a software program, or geolocational data from a mileage-tracking app.
• A device that stores, interprets, and disseminates that information.
• Both of these broadcast wirelessly to a central hub, which could be a computer terminal, a web-based application, or a software program
• Whatever data is collected by the telematics system will arrive at the central hub nearly instantaneously, giving fleet managers up-to-the-minute information on every vehicle with a working connection.

The Benefits Of Fleet Telematics

Incorporating fleet telematics systems into your organization’s workflow brings many potential benefits. Because the technology is so powerful and flexible, its applications are numerous.

Consider the following scenario: one of your team members is involved in a minor fender bender on the highway while making a delivery. Not only can you immediately call her a repair truck to her exact location, but you also have dashcam footage stamped with the time and date that proves she was not responsible for the crash when the insurance company comes to collect.

Fleet telematics systems create documentary evidence of your entire fleet’s network without you lifting a finger. It allows managers to flag unsafe driver behavior from afar that could be difficult to monitor otherwise.

If the telematics software is integrated with the original equipment manufacturer’s (OEM) diagnostic program, you might be forewarned of any looming maintenance problems. Some fleet telematics programs can monitor and assess the condition of suspension and braking systems, oil, fuel, coolant levels, and the vehicle’s internal combustion engine.

Fleet telematics software can also help managers identify room for efficiencies. If your mileage tracking app has geolocational features built in, comparing routes of individual drivers becomes simple, even across large distances.

Driver Behavior And Safety

According to research by the National Safety Council, most work-related accidents and deaths occur on the road. Safety becomes even more critical when your office is behind the wheel. [2]

Further studies into the causes and conditions of traffic accidents indicate that most traffic crashes are caused by human error. Researcher JR Treat of Indiana University found that human factors were the cause of 93% of the crashes investigated in the study. [3]

Fleet telematics solutions offer managers unprecedented tools to monitor and address unsafe driver behavior, especially when coupled with integrated dashcam footage.

Identifying problem drivers allows management to handle the problem discreetly and efficiently, suggesting adjustments to driver work procedures, reminding drivers of the need to follow company safety policy, or flagging drivers needing further defensive driving training.

Reporting And Compliance Made Easier

The uses of telematics extend beyond maintenance and driver training. Telematics can also be used to collect the appropriate documentary evidence to sustain claims that a car allowance is accountable according to the rules of the IRS.

Whether your company employs a traditional fleet, a tax-free car allowance (TFCA), or a fixed and variable rate (FAVR) program, telematics software makes complying with regulatory requirements a breeze.

Apps that track routing and mileage automate log collection, freeing up precious time for drivers and managers. With log data automatically synced to a vehicle’s GPS coordinates, proving claims to the IRS becomes simple, letting your drivers collect their vehicle allowances completely tax-free.

The Future Of Fleet

Those working in fleet management have many reasons to be excited about a bold and innovative new future.

The electrification of the fleet [4] continues apace as more and more vehicle manufacturers offer electric vehicles suited for the needs of commercial drivers. While still in an early adoption phase among commercial organizations, the electric vehicle future gets closer daily.

Then, there is the question of fully automated vehicles. The jury is still determining whether this will become a cost-effective business solution. Still, fleet telematics would allow multiple autonomous vehicles to be managed simultaneously from a central location.

On the hard tech side of things, as the fifth generation (5G) of wireless broadcasting technology is rolled out worldwide, telematics programs can send huge volumes of data while maintaining high download and upload speeds remotely. As data transmission ability improves, fleet managers will gain even more control over their assets from afar.

That’s before even mentioning the integration of more powerful microprocessors into consumer and commercial vehicles. The future of fleet telematics looks very bright indeed.

Ask The Experts

I’m excited about how fleet management continues to evolve as a field. At Cardata, we’re always looking for ways to make filing claims with the Internal Revenue Service easier, and we believe that fleet telematics offers businesses unprecedented new tools to monitor and manage their fleets from home base. More excellent technological solutions help technicians and managers reduce downtime and increase service reliability, leading to happier customers and more revenue.

Sources

[1] Telematics | Wikipedia  

[2]  Work Safety Introduction | Injury Facts 

[3] Tri-level Study of the Causes of Traffic Accidents | Repository & Open Science Access Portal 

[4] What Is Fleet Electrification? What Are Its Benefits and Challenges | Exro
Disclaimer: Nothing in this blog post is legal, accounting, or insurance advice. Consult your lawyer, accountant, or insurance agent, and do not rely on the information contained herein for any business or personal financial or legal decision-making. While we strive to be as reliable as possible, we are neither lawyers, accountants, or agents. For several citations of IRS publications on which we base our blog content ideas, please always consult this article: https://www.cardata.co/blog/irs-rules-for-mileage-reimbursements. For Cardata’s terms of service, go here: https://www.cardata.co/terms.