Telematics vs Unified Fleet & Delivery Management Platform

Telematics vs Unified Fleet & Delivery Management Platform

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  • Post last modified:December 3, 2020
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In fleet business scenario, the business is full of surprises due to rash driving habits of drivers, unnecessary stoppages, vehicle wear and tear, vehicle theft, and frequently changing traffic and road compliance rules.

And, this is the recipe for accidents, expenditure frauds, ultimately business losses. Thus, it is very important to have fleet management system or telematics system. 

Such systems help in tracking and monitoring vehicles effectively and efficiently in a cost-effective way.

This can offer companies a competitive edge especially during time of financial hardships where any saving can help companies go a long way.

The most important thing to notice here is, the term ‘fleet management system’ and ‘telematics system’ cannot be used interchangeably. Both the software system are different and have their own respective benefits. Although, there is some similarity, they are certainly not the same.

It is important to define and draw the distinction between the two. So, let us do that.

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So, what is fleet management system, anyway?

Fleet management system acts as a central repository of information that stores every data about your fleets you need to manage them efficiently, such as:

  • Whether the vehicles are purchased or leased
  • Detailed specifications of vehicles
  • Servicing and maintenance schedules
  • Servicing history
  • Documents related to driver’s license, vehicle’s insurance, compliance, tax, etc.
  • Fuel and other expenditure records

Such systems aim to reduce the efforts involved in managing fleets, streamlining their operations, and keeping them updated. This way, it helps fleet owners reduce the operational cost, meet compliance, and increase efficiency.

With built-in comprehensive reporting tools, fleet management apps can help you set alerts for functions like geo-fence, unauthorized access, vehicle idling, etc. and empowers you with stronger control on managing fleets.

Now, let us define Telematics system 

Telematics solutions are more than just tracking the location of vehicles on a map. It includes the installation of devices (known as Black Boxes) in the vehicle that monitors and tracks the information like vehicle’s location, its performance, driver’s driving behavior, and send data to the company’s server or the app installed in the smartphone.

Which one is right for your fleet business?

Ideally, both! But, practically using both is not possible for some businesses because of budget constraint. 

So, here we present the table that helps you understand the difference between fleet management and telematics solution.

Fleet Management Software
Maintains vehicle specifications, tracks vehicle service, scheduling records driver’s and compliance documents maintains records of transactions like fuel receipts, repair invoices, etc. Maintains driver’s details like the contact number, medical history, license information, etc.Maintains fleet policy tracks and ownership & operating costs.
Telematics Software
Track vehicle’s location, monitor driver’s behavior, plan optimized routes Views real time fuel, read real time odometer, sends alerts based on geo-fencing, sends alerts for reminding servicing, monitors vehicle speed, Alerts vehicle faults in real time, maintains trip history.

What should you really pick up?

With no surprise, reading the utility and benefits of both the tracking system, you must be now at the crossroads of selecting the best between the two.

Helping you overcome the confusion, and help you select the right solution – integrate the two and get the benefits of both.

Fleet tracking and Telematics system go together like cheese and wine. The benefits of integrating the two are:

  • The combination creates a more comprehensive monitoring and risk analyses by tracking driver behavior data with information on speed, violation of traffic rules, fines, etc.
  • Ability to track and alert about vehicle’s maintenance to ensure timely repairs .
  • Eliminate vehicle idling
  • Optimize routing
  • Streamline processes by automating administrative tasks
  • Improve accuracy by eliminating error prone paper work

Long story short, integrating vehicle tracking & fleet management system with telematics software creates an opportunity for businesses to reduce operational cost and increase efficiency.

Key Takeaway

Fleet management and telematics are definitely different solutions, and have their respective benefits. However, when used collectively, the combination vastly enhances the capabilities of fleet owners to map, monitor, and manage vehicles.

Providing actionable insights on vehicle’s usage, driver’s behavior, routes taken, distance travelled, fuel consumed, places visited, etc. – the combination of two systems helps fleet owners to make operations more efficient.

So, what do you think- which solution should be right for your business? Voice your opinion in the comments below.

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