Telematics is the term coined from a combination of the words telecommunications and informatics. Vehicle telematics encompasses global positioning systems and information on how fast a car is traveling, how fast it stops, its fuel consumption and where it, or associated equipment, is located.
A telematics system can be as simple as an over-the-counter dashboard Navman or TomTom giving a driver directions to a location and updates on best routes to avert current traffic congestion.
In fleets though it usually comprises a custom-built system that plugs into the vehicle’s engine management system and feeds data from the vehicle back to a server for analysis by an office based worker or fleet manager.
Fleets have increasingly adopted the use of telematics for several reasons. They use it to improve the management of assets and maintenance scheduling. It’s used to train drivers and post incident analysis. And for many organisations, telematics helps with customer service complaints and improves safety for isolated workers.
The heavy vehicle industry has the highest rate of adoption according to research conducted by Sydney-based market information group ACA Research. Their 2015 survey showed that among large truck fleets of more than 25 vehicles the take-up rate was 76 percent. The adoption rate was 49 percent for trucks fleets of between six and 25 vehicles, and was just 18 percent for fleets with less than six trucks.
“The level of take-up of telematics has historically been lower in passenger and light commercial fleets when compared with those operating heavy commercial vehicles. However we are seeing an increase in the level of enquiry and acceptance from managers of passenger and light commercial vehicles” confirms Matthew Gambell, Fleet Strategy Manager at Toyota Fleet Management.
Though even with the obvious benefits and return on investment for transport fleets, the overall penetration of telematics is very low.
One segment of early adopters is local government. They use the system track assets and reduce theft. And most have telematics installed in at least some of their passenger vehicle fleet.
That’s a small proportion, but fleet managers and telematics providers all agree its growing. The advances in the technology, an increased understanding of the benefits and declining costs for installing and maintaining systems mean that adoption of telematics among fleets is accelerating.
ACA’s research also showed: 97 percent of telematics users have it for vehicle tracking; 61 percent use it for fatigue management; 56 percent use it for driver performance management; and 48 percent use it for vehicle performance management.
Telematics have been around in Australian fleets since the late 1990s. In those very early days it relied on radio base communications to submit the data. With the advent of mobile phones and the cost of mobile data decreasing, it’s gone from very basic information to very rich data; for example location data is now accurate down to one metre.
Some of the most basic systems today cost an estimated $500 to install per vehicle and another $20 each month for maintain and access to reporting. The costs escalate into the thousands for installing more complex systems.
Many organisations question the ROI. But the ones that have had it for many years, and use it properly, believe the payback period is very short.
And, can all fleets benefit from a telematics system?
“Yes, without a doubt,” says Gambell. “There are many benefits in terms of safety, productivity and knowing where your assets are; telematics has the potential to change your business processes to deliver tangible benefits”.
