A Brief History of Fleet Telematics

The origins of fleet telematics can be traced back to the 1970s and the advent of Global Positioning System (GPS) technology. It should be said from the outset that "GPS" is to satellite-based navigation, what Hoover is to the humble vacuum cleaner; it is a frequently conflated term. "GPS" is a US-developed military satellite technology that quickly found its way into civilian use. Nonetheless, this American constellation of satellites is just one of several that fleet telematics uses (other notable examples being Galileo, GLONASS and BeiDou). The correct definition for all such constellations is 'Global Navigation Satellite System' (GNSS).

The Development of Fleet Telematics Applications

By the late 1990s, the potential of GNSS technology for fleet telematics began to be realised. Companies started to use GNSS to track their vehicles, enabling better route planning and real-time location monitoring. This period saw the emergence of basic fleet telematics systems, which combined GNSS tracking with simple data logging capabilities.

In the early 2000s, advancements in vehicle technology facilitated the integration of diagnostics into fleet telematics systems. This allowed for the monitoring of various vehicle parameters such as engine performance, fuel levels, and maintenance needs. These developments marked a significant shift, as fleet managers could now proactively manage vehicle health and performance through fleet telematics insights.

The evolution continued with the incorporation of data analytics in the 2010s. Fleet telematics systems began to analyse data in real time, providing actionable insights into vehicle usage, driver behaviour, and overall fleet efficiency. This era also saw the rise of cloud computing, which enabled the storage and processing of large datasets, further enhancing the capabilities of fleet telematics.

What are the practical applications in Fleet Management

Enhancing Operational Efficiency

In simple terms, fleet telematics systems provide fleet managers with information and insights about vehicle geolocation, usage patterns and vehicle health metrics. This information can assist fleet operators in reaching sustainability goals and service targets by indirect means such as optimising route planning and improved fuel efficiency. Whilst it can be debated what the actual savings for a fleet can be - as it is highly contingent on how the vehicles are driven and maintained - broadly speaking the implementation of fleet telematics (if applied correctly) can result in a circa 15% reduction in fleet operational costs.

Improving Safety and Compliance

Safety is a critical concern in fleet management. Fleet telematics systems monitor driver behaviour, identifying driving patterns involving braking, acceleration and speed. Video telematics can also monitor in-cab and the vehicle exterior, thus by monitoring these behaviours, fleet managers can enhance driver safety, reduce the risk of accidents and - as mentioned - improve operational efficiencies. Additionally, fleet telematics systems assist in ensuring compliance with regulations by maintaining accurate records of driving hours and maintenance schedules.

Cost Management and Return on Investment

The financial benefits of fleet telematics can be significant. Improved fuel efficiency, reduced maintenance costs, and enhanced vehicle utilisation can contribute to cost savings. As previously mentioned, fuel savings alone can be in the region of 15%, whilst factoring in reduced wear-and-tear can push this figure higher still. An interesting use for Fleet Telematics that it can be used by an OEM (where the OEM is also providing the telematics service, such as Daimler's Fleetboard) to assess vehicle usage over the lifetime of a leasing agreement, and to advise fleet operators of whether an early lease termination is of benefit to them, especially if it involves the fleet operator being upsold into a new vehicle available from the OEM itself...

Final Thoughts

Fleet telematics has become an integral part of modern fleet management. Through the integration of GNSS, vehicle diagnostics, and data analytics, fleet telematics systems provide valuable insights that enhance efficiency, safety, cost, and asset management. As technology continues to advance, fleet telematics will only grow in popularity as a critical tool for fleet managers, enabling them to further increase efficiencies in the management of their vehicle fleets.