Telematics is a combination of telecommunications and informatics that can help companies monitor their fleet and drivers.

Telematics involves sending information remotely over long distances. It usually combines telecommunications (the remote means of communication) and informatics (the practice of information processing).

Telematics systems (also known as Fleet Telematics) collect data using GPS technology, sensors, and onboard diagnostic codes. This data includes real-time engine diagnostics, vehicle activity, driver behavior, and vehicle location.

A telematics system usually has the following components: fleet communication software system, GPS tracking device, engine interface, input/output interface, SIM card, and accelerometer.

Telematics Vs GPS Tracking:

Global Positioning System (GPS) tracking is the core of the telematics system. A GPS receiver, which looks like a black box, is installed under each vehicle's dashboard to collect real-time data about the vehicle's location and status. The telematics system sends the GPS tracker’s data over a cellular network to the fleet systems central server. The server processes the data, converts it to usable information, and makes it accessible to other computers on the network.

How Do Telematics Systems Work?

A telematics system uses the vehicles’ GPS tracking device to send, receive, and store telemetry data. The telematics system collects GPS and vehicle-specific data, which it transmits through different methods e.g. cellular network, satellite communication, 4G mobile data, and General Packet Radio Service (GPRS) to the central server. The server analyses the data and enables end users to view the results through a secure website or mobile app.

The telematics system collects these and other data about the vehicle: location, usage, maintenance issues, fuel consumption, idling time, instances of harsh driving (e.g. hard braking or cornering), speed, and rapid acceleration.

This enables you to analyze the data for certain events and patterns and create reports on specific drivers, vehicles, and the entire fleet.

Additional Uses of Telematics Systems:

1. Vehicle Tracking: You can track your vehicles in real-time with GPS receivers and satellites, GPRS networks, and cloud computing.

2. Asset Tracking: You can install GPS trackers on vehicles and non-motorized assets to know where they are at all times and to route drivers to specific trailers. You can also set up the system to receive necessary alerts.

3. Safety Tracking: Telematics systems can monitor a vehicle’s speed and location, identify harsh driving practices, and ensure drivers are wearing their seatbelts.

4. Insurance Risk Management: Insurance companies can use telematics to monitor drivers’ behavior, evaluate their risk levels, and set insurance premiums.