Telematics system – function and application

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Efficiency and effectiveness are important for all companies; in most areas this can be evaluated and optimized through technical support. Companies with large fleets use telematics systems to get a good overview of the fleet and processes. Vehicle telematics works with determined data and a telecommunications system, giving the entrepreneur the opportunity to monitor, control or optimize all processes.

Function of the telematics systems

Telematics systems consist of an on-board computer inside the vehicle, which can be linked to an existing GPS system. Such a system can be flexibly adapted to the operation and use; with the associated software , the head of fleet management can access, manage and use all the data determined.

The installed tracking device requires a fixed power source in the vehicle ; it can be constantly supplied with energy via the OBD interface or the vehicle battery. Telematics systems then become a wireless network, captured GPS information is displayed in real time on the connected computer or app.


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With the help of telematics systems, companies can use location-based data about their own fleet . Such systems are primarily installed and used in trucks; in combination with a GPS module, GPS data can be determined and used for planning within the company. The fleet manager always keeps an overview of the drivers, routes, speeds and idle status of the individual vehicles.

Additional vehicle-related data can be used to record fuel consumption, driving behavior and exact driving times. This information is of great importance in optimizing operations .

Truck telematics

With a telematics system in the truck, complete records of all tours can be kept. In addition, they offer the driver and the company many advantages, and customers also benefit from the exact positioning of the truck.

Necessary items for a functioning telematics system

Depending on the vehicle, the necessary telematics hardware is often already installed; for new vehicles, the necessary components can be ordered additionally. If this is not the case in an existing vehicle, this technology can be retrofitted at any time. GPS trackers for use in the vehicle can be purchased and installed later at any time, but these differ in the power supply. Some GPS trackers have an integrated battery that needs to be charged regularly. However, since a lot of data is transferred, the capacity of these systems is quickly exhausted. If you want to avoid regular charging, you can use a GPS tracker that is permanently connected to the vehicle’s power.

In addition to the hardware, additional software is also required; depending on the provider, this can be used on the PC or via an app on a cell phone and tablet. After creating an appropriate account, the user can add and overview all vehicles.

Tasks of a telematics system

In addition to real-time vehicle tracking and checking fleet activity , determining data through a telematics solution offers additional benefits and functions for companies.

Route planning

Route planning is considered the most important function for smooth journeys. In order to work and plan as efficiently as possible, it is important that the fleet manager has a good overview of the utilization of the vehicle fleet . With the help of the data determined from the telematics system, possible optimizations can be made for future planning. By visualizing the route, spontaneous adjustments are also possible; thanks to the quick communication with the driver, the driver can be informed about possible traffic jams or obstacles.

Protect fleet

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The use of telematics systems also promote vehicle theft protection; part of the system is a GPS module that reveals the current location at any time. This makes it possible to check where the vehicle is , even outside of business hours. The user can set additional alarms or digital limitations ; if these are triggered or exceeded, the alarm is triggered. For example, the company premises can be fenced off and the user receives a corresponding message when entering or leaving the premises. If vehicles are stolen, the manager can track this in real time and inform the police immediately. This increases the chance of detection and protects the vehicle and cargo.

Manage fleet

With the help of modern telematics systems with GPS support, the need to keep classic logbooks is no longer necessary. The integrated telematics system records the exact working hours of the driver and the driving time of the truck; the data determined corresponds to the standard and also withstands the audit of the tax office.

The extensive range of tasks involved in fleet management can be simplified using telematics systems, and certain procedures can also be automated to a large extent. The information collected is transparent to the user and can be viewed at any time. All stored data is stored in the provider’s online portal and is saved there for a certain period of time. These factors promote optimal utilization and increase the efficiency of the company .

Improve customer service

Data determined by the telematics system can be visualized on a map and this view can be shared with customers. The customer therefore has the opportunity to track their delivery live and prepare for its arrival. This step can also be automated; if desired, the tracking link can be sent to the customer a certain time in advance.

Fleet management and better fleet management with GPS

Telematics systems support companies in their day-to-day business, they analyze processes and help with optimization. The possible uses for drivers and operations are diverse; whether upgrading vehicle fleets makes sense and is worthwhile must be clarified in advance.

Advantages of telematics solutions

The use of telematics systems provides a full overview of all fleet activities and vehicle usage in the logistics company. A telematics system supports dispatchers in their day-to-day business and increases the safety of drivers, freight and vehicles . With the help of every piece of information from the data transfer, work processes can be optimized in every industry, especially in the field of freight forwarding, a telematics system meets the requirements and supports logistics.

With the help of telematics systems, all vehicles and construction machines within the company can be integrated into the software and viewed at a glance. Anyone interested in such systems will find various models and can get appropriate advice from the providers. The processing and status of current orders can also be managed with a telematics system. These technical solutions not only support companies with fleet management, they also offer opportunities to upgrade the entire communication for more success and optimal utilization.

Disadvantages of telematics solutions

The user can usually offset the purchase, installation and monthly costs of a telematics system by increasing efficiency. However, you should carefully check in advance which solutions offer the greatest added value. There are additional costs for using the corresponding software; the amount of the charge varies depending on the provider.

If you only want vehicle tracking in real time, GPS sensors can already be the solution; then no telematics systems are necessary for fleet management . For the smooth use of telematics, not only the hardware or software is necessary, but also a fast connection to the Internet and your own server for data backup are useful. Ideally, the company should have modern technology or plan to purchase it.

Data exchange with telematics – conclusion

Telematics programs provide the company with many functions , these provide support in various areas, but especially in logistics and planning for the use of fleets . The information determined can always be read and used for optimization. In addition to the trucks, all units can be equipped with telematics and GPS, so every car and machine can also be integrated. Anyone who opts for a telematics solution can adapt this to the fleet. For most companies, the use of such systems is worthwhile and supports everything related to logistics and processing.


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