How to Increase Fleet Business Profitability with Telematics

Even after the 2020 COVID-19 pandemic, the fleet and transportation industry around the world has stayed strong. During that time period, people had to stay inside their homes to avoid infection and thus most shopping was done online and delivered by vehicle.

Fleet vehicle management system

Telematics solutions became one of the strengths of the US industry during this time. With the help of telematics solutions, fleet companies have been able to track and monitor their vehicle diagnostics while also improving the safety and productivity of drivers in these few years.

So, it comes as no surprise that multiple field service businesses in the US are saving millions every year just by analyzing telematics data. Read on to find out what happens if a fleet business ignores telematics data and how telematics helps increase profit.

What Happens When Telematics Data Is Ignored?

Most companies focus on Return on Investment (ROI), but ignoring COI will also have a huge impact on the company. Profit maximization is the goal of both ROI and COI however both function differently. COI is mostly based on minimizing costs and maximizing savings while ROI is about finding strategic ways to invest money.

But one needs to understand why COI is important. Everything that comes under fleet management like fuel cost, driver salaries, vehicle maintenance, etc., consumes a majority of a company’s budget. But there are certain times when unplanned repairs are needed to make, or a driver gets injured in an accident.

In these cases, having a telematics solution will help you monitor vehicle usage or the driver’s on-road conduct in real-time so unnecessary costs on repairs, and fuel consumption can be avoided.

Ways With Which Telematics Help Increase Business Profitability

Routing Optimization

When job dispatches are performed, routing optimization also works along with it to complete a lot of jobs in a day. With the help of GPS trackers, drivers can get information on unexpected traffic, roadblocks, etc. The telematics system will recommend other alternatives while ensuring timely delivery to customers.

It can also help fleet managers with analytical functions too. With the telematic system, they can review all jobs and schedule them more effectively by evaluating the fastest and shortest route. Not only will this improve the productivity of the drivers but it also allows them to utilize their on-field time efficiently.

Safety of the Driver and Vehicle

Most of the time, fleet vehicles are on the move to deliver to the consumer at distant or far places. This is a major concern for fleet managers. It has been studied that, careless or distracted driving is some of the major causes of accidents, that can disturb the fleet budget.

With telematics, fleet managers can ensure safe fleet rips with the driver being closely monitored. Not only are the drivers assessed for their driving pattern but any reckless driving behavior can be identified easily and in real-time. It will quickly generate alerts and help the managers to deploy quick measures.

Reminders for Maintenance of the Vehicles

Maintaining the vehicles in top condition for daily jobs is a necessary task of fleet managers. Vehicle components like tires, brake pads, steering columns, etc., wear and tear on a regular basis, and neglecting these issues increases the chance of a breakdown or even an accident.

Fleet managers can use telematics for preventive maintenance by tracking mileage, use of engines, and fuel consumption. With the automatic reminder feature, a fleet manager can schedule time-to-time maintenance and detect any signs of malfunction even before the problem occurs. This can prevent accidents and keep the repair and hospital costs to a minimum for the company.

Retention of Customers Is Increased

Customer satisfaction is an integral part of any business to have success in this era of cut-throat competition. To achieve a happy customer base, a company needs to provide the best-in-class services. But the question is can telematics help with this?

The answer is yes. With telematics, fleet managers can take delivery to the next level. This only becomes possible when customers become a part of the tracking chain with the help of a telematics system. With this system, even they can monitor the real-time location and movement of the delivery vehicle. This will help to maintain transparency.

Scheduling and Dispatching Jobs

The job of a fleet manager is quite challenging. They have to spend a significant amount of their work time on phone calls to match drivers to their jobs. It might be very tedious for them to figure out which drivers are accessible, who are closest to the job location, and where they are right now.

With telematics solutions, fleet managers can get information on real-time traffic status, historic journeys, and other important details that can be used to find the closest available vehicle. This will help the managers to plan effectively and offer accurate estimated times of arrival to the customers and other employees ensuring the operation proceeds smoothly.

Helps Track Success

With the help of telematic solutions, fleet managers can track the usage of any of the business fleets and can accordingly streamline the work order so that efficiency can be maintained. The fleet managers can assign delivery jobs to any nearby vehicles in real time with the help of telematics.

Fleet managers can also use location trackers to streamline task assignments. This will help to assign more tasks with the use of a lower number of vehicles. Even unauthorized use of the vehicles can be tracked with the GPS options like geofencing.

This feature allows fleet managers to mark the journey with virtual fences. In case the driver breaches it, the fleet manager will be notified instantly.


Fleet managers need to handle all duties while maintaining a complete perspective of all activities. Telematics can maximize operations and guarantee all activities are coordinated and handled successfully in real-time via a user-friendly interface.

Investments in telematics solutions can assist in improving the customer experience, business revenue, and profitability, as satisfied customers are possibly the most essential factor of all.

Business fleet


How can telematics data analytics help a fleet business?

Here is the list of things telematics data can help a business:

  • It helps to understand the areas that need improvement
  • Severe issues can be identified in less time
  • Any loose ends can be tied up during an operation
  • Internal processes can be improved immensely
  • Helps to increase productivity

Can telematics protect a fleet business from theft?

Yes, telematics solutions help to prevent any kind of theft by providing real-time data and information about the vehicles used, where they are present, and if there is any form of damage done to them. Telematics data includes time-stamped location details that offer information on the route, stops, etc., that are collected while the fleet is on the road. This data allows the company to distinguish between extended duration of stoppages or unexpected stoppages, which might indicate problems such as theft of items, or fuel.

Can telematics help cut down the operation cost of a fleet business?

With a proper analysis of the data provided by the telematic solution, fleet managers can have a better idea of the total cost of operations involved. This will further allow them to come up with plans to reduce various costs while making a profit.


Leave a Reply

Your email address will not be published. Required fields are marked *