The successful running of any business requires prioritising financial efficiencies which is why a crucial aspect of fleet management needs to involve telematics: that is, the monitoring of vehicle location, movement and status of a vehicle or fleet.

  • 40% of commercial businesses use fleet telematics.
  • Telematics can save on average 12% in annual fuel costs
  • Fleet tracking helps to reduce speeding events and fines

By fully utilising the data collected by managers it is possible to optimise both vehicle movements and fuel consumption and thus reduce per-mile cost.

Delivery lorries use fleet telematics to get best delivery routes in the UK
Data published by Exeros Technologies demonstrates that on average fleet van fuel consumption is 31.46mpg.

Figures from 2016 show that 40% of businesses are now using a fleet telematics system and this number is growing.

The fleet managers now see the value of this technology, while previously suspicious drivers are accepting the need and are increasingly less concerned about the ‘spy in the cab’ issue.

The Benefits of Fleet Telematics Solutions

Data published by Exeros Technologies demonstrates that on average fleet van fuel consumption is 31.46mpg.

Telematics Case Study

In this example, after three months of telematics use, average mileage had risen to 36.08mpg.

That’s an improvement of 14.7%. At a sample fuel price of £1.11 based on an average monthly 2,090 miles.

This resulted in a saving of £42.89 saving per vehicle per month.

Prior to the installation of telematics, the average mileage by a trial vehicle was 2,228 miles per calendar month.

Following the implementation of telematics, this has reduced on test to 2,090, a reduction of 138 miles.

Unquestionably this is why telematics systems work and are making increasing sense for all as this major retailer discovered, having saved 12% in fuel and 6% in accident damage, along with having the ability to offer improved customer service.

Birdseye view of the motorway UK
Figures from 2016 show that 40% of businesses are now using a fleet telematics system and this number is growing.

Telematics Improve Fleet Performance

Telematics is an interdisciplinary field that, among other things, encompasses vehicular technologies including road transportation, road safety and automotive navigation systems.

The use of this technology in commercial and fleet transport is generally known as vehicle telematics or fleet telematics.

Telematics work like this:

A GPS-enabled tracking device is installed on each vehicle. This collates and transmits tracking data while using either the OBD port or CAN connection to obtain deeper vehicle performance data.

Once installed the data can be managed twenty-four hours a day or as long as the vehicle is in use in real time.

Info graph displaying how telematics work and communicate with each component. Illustrated example by exeros technologies
How fleet telematics work – Typical telematics setup.

Whatever the purpose of running a fleet of vehicles, for deliveries or employee use, for example, the application of telematics software will benefit the delivery of goods or the timeliness of staff.

This can only enhance a company’s reputation. A healthy reputation for customer service leads to more business in the future.

Vehicles will be less prone to breakdowns because commercial telematics will keep tabs on servicing needs and on the actions of drivers.

How a vehicle is driven can directly contribute to extra cost, possibly through unnecessary acceleration for example, allowing managers to make informed decisions about driving training and welfare.

Computer displaying optimised vehicle route using fleet telematics software portal
Telematics software enables fleet managers nationwide to improve day-to-day fleet performance.

Telematics Improve Driver Performance

In the same way that black boxes for insurance purpose are benefiting young, newly qualified drivers, so commercial vehicle telematics will aid driver performance.

The sense that they feel spied upon can be answered by how much telematics can help them just as much as the company.

Driver use fleet telematics to get daily scheduled deliveries on time

In other words, telematics can make their driving life easier and safer.

For example, integrated accurate navigation will help to avoid traffic-laden routes or accident events. This will mean their daily drive should be less stressful and they will as a consequence feel less pressure to make deadlines.

The Future

Driverless vehicles are our driving future and telematics will play a major part in perfecting this technology.

The difficulty, if it can be seen that way, is persuading drivers, commercial or otherwise, to accept that the science works and is safe. As described above, fleet telematics is proving valuable to business.

Fully autonomous vehicles will have to monitor and be monitored full time. This means constant transmission of large amounts of data. The solution to that is telematics.


Learn more about Fleet Telematics