How Telematics Can Improve Worksite Productivity

What is a telematics system, and how does it work?

A telematics system is installed in a vehicle to collect real-time data transmitted via cellular networks to the cloud. Fleet managers can then access this data through any connected device, leveraging the Global Navigation Satellite System to pinpoint vehicle locations at any time. Not only is it smart to know where your vehicles are, but you’ll also have a complete history of the fleet’s journey. Diagnostics allow you to monitor the status of machinery, whether or not it’s on-site. A typical system tracks speed, fuel usage and equipment conditions, and can aid recovery if a vehicle is stolen. Given the cost of most industrial vehicles, that’s a huge win. [Learn more about best GPS fleet management systems]

How does telematics improve your business?

A telematics system provides a host of opportunities for all businesses to improve efficiency and save on fuel. Still, it’s important to understand the full spectrum of benefits that come with incorporating data collection and analysis into your fleet management strategy. We live in a data-driven world. If your business isn’t taking full advantage of all the cloud-based tools at its disposal, it may be lagging behind competitors. 

In fact, telematics adoption is accelerating worldwide, as the global commercial telematics market reached $57.65 billion in 2023, according to Fortune Business Insights. It is expected to grow to $372.33 billion by 2032, reflecting a 23.2 percent CAGR. Here’s why so many businesses are incorporating telematics into their fleet management strategy:

Money savings

By signing up for these cloud-based services, you’re taking steps toward improving your bottom line. From the outset, telematics services can be written off as a deductible business expense. This can help you decrease your taxable income, which can save you money come tax time. Typically, any hardware components needed to outfit your vehicles, such as electronic logging devices, can be written off as capital expenses and monthly subscription fees can be credited toward operational costs. 

Improved fuel efficiency

By decreasing fuel consumption, your business can save money. A significant feature of telematics software is improved visibility into fuel usage and efficiency. Telematics solutions include driver fuel usage statistics, overall miles-per-gallon figures and even driver coaching tips to encourage efficiency. This, combined with better insight into when to hit the pumps, will allow your business to increase its bottom line.

Better management of your business

For small business owners, it’s essential to audit and adjust your management style constantly. Great managers evolve often. Telematics is a tool you can use to manage your workers and assets better, potentially accelerating your business’ evolution. You’ll know when assets and drivers have left your location, where they are, when they’ve arrived at their destination and how long it took them to get there. 

Fleet safety compliance is easier to achieve, too. Telematics users who receive behavioral feedback reduce risky driving by as much as 15 percent, according to the CMT Distracted Driving Report. You’ll be able to work with drivers to ensure they’re operating in a safe, responsible manner and you’ll be able to coach them on improving fuel efficiency. A major facet of running a business is ensuring everyone is functioning at the highest level possible: Great managers make their workers better versions of themselves. By using all the tools at your disposal, you can do this. 

How can businesses with fleets use and benefit from telematics?

Telematics has the potential to save your fleet time and fuel while improving safety and communication between management, drivers and operators. What telematics can do for you will depend on the type of data you’re seeking.

Here are several factors you can track with telematics and how you could use them to improve your fleet.

Routes

You can track your fleet’s regular routes and use the geodata to plot better routes for faster delivery and less fuel consumption. Pairing your telematics with real-time traffic reports will allow you to reroute vehicles to avoid slowdowns. If your vehicle is stolen, telematics can help police track it down.

Vehicle status

Many telematics systems can record when the vehicle is on, off, moving and idling. You can track a driver’s efficiency to ensure they are making reasonable time without unnecessary stops. You can also monitor vehicle speed and know when drivers are speeding or participating in other reckless driving. This data will help you compile driver reports and identify where drivers need improvement.

Vehicle condition

Knowing how much fuel your vehicle has, as well as how much it’s using for trips, optimizes your fleet planning and lets you know how efficiently each vehicle is running.

Tying monitors to specific systems, like fuel level and tire pressure, will let you know when a vehicle is not running as efficiently as it could and when it’s time for a tune-up. You can prevent serious breakdowns by identifying problems as they materialize, thus increasing safety and saving on maintenance costs.

Customer relations

Telematics isn’t only for the benefit of drivers and those in the office. You can share the data with customers who are expecting important orders so they can plan accordingly. Many GPS fleet tracking platforms now allow you to send links to customers, which allows them to track the live location of their packages.

Dispatching

For businesses deploying vehicles for fieldwork, telematics helps you with dispatch services. Knowing a fieldworker’s location and job status lets you easily reroute them to new jobs nearby without having to return to the garage. 

What are the benefits of heavy machinery telematics?

Telematics offers several benefits to construction businesses that regularly operate heavy machinery at worksites or on field assignments. Equipment with this capability can be operated more efficiently and safely, which can result in savings. Major equipment dealers offer versions of their vehicles and machines with telematics installed. Remote diagnostic capabilities allow you to monitor your inventory of machinery and can provide you with valuable data points.

Maintenance tracking

Routine inspections of equipment are commonplace on construction sites. While this is a great preventative measure, constant diagnostic reports are an even better way of tracking a machine’s health. Maintenance tracking with diagnostic reports alerts you to when it’s time for maintenance or to retire the machine. Remote diagnostics can even identify problems the operators and inspectors may be unaware of. These systems can detect if a machine’s engine is working harder or struggling more to accomplish a job compared to its past performance.

Usage tracking

You’ll be able to see the daily usage of your company’s machines as well as how they’re being used. Knowing how often a particular machine is being used can help you plan how many machines should be deployed to the next work site. You can also see when a machine has been idling for too long or if an operator is misusing a piece of equipment, such as overloading it. You can know when you’re using too much fuel and if there are practices on the worksite that you need to correct.

Insurance

Many top insurance providers will offer you better commercial insurance rates and other benefits if you use telematics to track your machines’ and fleet’s safety and maintenance. If you want lower deductibles, provide proof to your insurance company that your machinery can be tracked via GPS, which can help prevent theft and misuse.

Matt D’Angelo contributed to the reporting and writing in this article.