6 ways in which telematics technology can improve vehicle fleet management

  • By Barun De
  • Aug 18, 2021
  • 3 min read

With increased competition and rising cost pressures, fleet owners and managers need data insights to drive efficiencies in their fleet operations. We have listed below 6 key ways in which telematics solutions (connected vehicles) can improve the profitability of your fleet’s operation.


1. Saving Fuel Cost

Fuel cost typically comprises 40% to 60% of a fleet’s operating cost. The two key factors that can help to control fuel costs are driving behaviour and proper vehicle maintenance. Economical driving behaviour like driving in the right gear, at optimal speed and switching off the engine at traffic junctions can save up to 10% of the fuel cost. A well-maintained vehicle with a clean air filter, proper tyre pressure, etc., can ensure the vehicle is providing the best MPG. Telematics-based fleet management dashboards help fleet managers identify fuel savings opportunities, take necessary action, and measure the impact of these actions.

2. Reduce Downtime with Preventive Maintenance

Unforeseen downtime is a major cause for loss of business to fleet companies, in addition to consuming the bandwidth of fleet managers. Maintaining vehicles in good condition is a key goal for all fleet managers and preventive maintenance plays an important role in this regard. Preventive maintenance is divided into two primary categories. The first is the regular periodic maintenance of the vehicle depending on distance travelled or time elapsed from the last maintenance. The second is to be informed of any problems with the vehicle early on and to take the necessary maintenance measures.

Although regular maintenance is a common practice, taking action on vehicle issues at the right time is ignored due to a lack of information on issues. That is where OBD based Telematics solutions can provide timely diagnostic alerts and predictive maintenance suggestions.


3. Reduce Accidents by encouraging Safe Driving

Accidents caused by risky driving lead to major losses for fleet companies with enormous repair costs, vehicle downtime, legal costs and, loss of insurance benefits. It also increases vehicle wear and tear as well as maintenance costs. A good solution should be able to report unsafe driving incidents, analyse drivers' driving patterns over an extended period of time, and identify unsafe drivers using certain quantitative measures such as Safe Driving Score. With personalized guidance, drivers can be progressively coached to become safer drivers.

4. Use Geofencing for Effective Location Monitoring

Appropriate geo-fence and other location-based alerts with real-time notifications can assist fleet managers in tracking all key vehicle movements. It allows fleet managers to monitor when a vehicle has reached or left a base, and how much time a vehicle spends at customer locations. Additional features such as sharing vehicle location on demand with customers can further boost productivity of the fleet managers.


5. Improve Fleet Utilisation through Route Planning and Optimization

For Fleet operations involving daily vehicle assignment and route scheduling, an automated route optimization solution can help minimize the number of vehicles needed and overall travel distance/ time for completing the same number of tasks. It can increase operating profitability if the fleet company is paid per delivery operation or per pick-up/drop. It can also provide the end customer with information on the expected arrival time, thereby increasing customer satisfaction.

6. Prevent Fraud by Route Deviation Analysis

Automatic detection of Route Deviation can help fleet managers keep tabs on unauthorized detours and misuse of vehicles. Fleet managers should be able to define reference trips and see the magnitude of the variance from any other trip w.r.t. the reference trip in a good fleet management application.

About AutoWiz OBD-GPS Based Fleet Management Solution:

The AutoWiz app on the mobile and fleet management platform for PC combines with the AutoWiz OBD device in the vehicle to deliver an all-in-one vehicle telematics solution. AutoWiz plugs into the vehicle's OBDII port and keeps the vehicle connected to the cloud. AutoWiz Fleet Management Platform analyzes the vehicle data feed to provide features such as real-time location, fuel consumption, driving behaviour, vehicle theft/towing alarms, and Vehicle health diagnoses (with DTC codes). View more information on AutoWiz Fleet Management Solution.