Why Fleet Telematics is the Next Big Thing in Logistics

Many companies and industries rely on a fleet of vehicles to carry out operations when it comes to day-to-day…
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Many companies and industries rely on a fleet of vehicles to carry out operations when it comes to day-to-day business. From delivery drivers and service technicians to roofing contractors, a host of business vehicle fleets operate around the world each day. The success of these businesses largely depends on how efficient and productive these vehicles are. Managing so many moving parts, however, can be difficult.

Perhaps the biggest challenge to fleet management is in logistics. From planning routes and tracking assets to monitoring fuel use and maintenance needs, successful fleet management must assess each vehicle. Businesses can track service vehicles with traditional GPS monitoring, but they don’t gather any data about vehicle usage and patterns. This can lead to inefficient planning and reduced productivity across the entire supply chain or business operation. Vehicle telematics, however, can provide solutions to help eliminate some of these roadblocks.

For some time now, the automobile industry has recognized the appeal and benefits of telematics technology. Many new automobiles today rely on this technology to assist drivers from keyless entry to remote emergency dispatch services. The Internet of Things has created a world where devices, machines, computers, and even vehicles can be connected to networks and provide long-range communication and data in real-time. Managers can now leverage these capabilities to increase efficiency and improve operational logistics.

No matter the size of the fleet, having tracking data, fuel consumption information, optimized route planning, and driver behavior monitoring can help improve operations. Fleet telematics technology is a powerful business tool that is proving to be the next big thing in logistics management. Let’s examine some ways that telematics is changing fleet management.

Enhanced Efficiency


One of the biggest benefits of fleet telematics for businesses is that it eliminates the need for complex tracking and monitoring by dispatch managers and others. These systems automatically track data and information received from each vehicle and then can alert fleet managers when something needs attention. Similar to flying on autopilot, the system can run itself and only needs to be monitored.

Telematics also improves efficiency across the entire fleet. Smart technology can enable your vehicles to speak to each other and alert systems to weather changes and traffic issues. This allows for optimized route planning to bypass traffic or change directions in real-time. Rather than relying on dispatch managers and a series of other processes, the system can intervene to reduce downtime and improve routing.

Quick Decision-Making


With real-time tracking, fleet managers can avoid delays in information and data. Vehicles can instantly report fuel consumption, technical difficulties, accidents, and other information. Having more immediate access to this information allows fleet managers to make timely decisions about maintenance, routes, deliveries, and pick-ups. Additionally, fleet telematics data allows business leaders and managers to harvest actionable data. Information from the system dashboard will reveal key analytics for each vehicle. Decision-makers armed with this information can better understand how vehicles perform and contributing factors that lead to delays and inefficiencies.



Fleet telematics can provide data that gives businesses more visibility into their operations. At any moment during the day, fleet managers will know where drivers are, what they are doing, where assets and products are located, and the outcome of every stop. This information leads to better customer communication and improved logistical operations.

Telematics fleet management is predicted to experience exponential growth by 2025 and will become the standard for fleet management across most industries. Creating a process where products and people move efficiently is the key to unlocking the maximum value of any fleet operation. Telematics technology is helping companies understand this information to make smarter logistical decisions and improve the entire organizational operation.