Telematics is fast becoming the ‘must have’ technology for the fleet industry with research showing that almost nine out of 10 fleets, with more than 500 employees, have introduced telematics. One things for sure, it will become a fundamental part of our fleet management lives over the next few years.

So why the surgence in telematics within the logistics company?

Telematics can help tackle four of the biggest issues facing fleets: cost control; risk management; carbon reduction; and fleet productivity.  Here’s a breakdown of the benefits….

  1. Helps to reduce insurance cost

When a company installs GPS tracking devices in its vehicles, insurance companies give discounts on premiums. Therefore, by equipping all vehicles with GPS tracking devices, the companies tremendously reduce the insurance premiums that they pay every month.

  1. Helps them to locate their vehicles at any given time

Being able to know the location of vehicles at all times helps a transportation company to communicate more effectively with its drivers and customer. By seeing the location of all company vehicles on a map, the company can communicate to its customers the exact time the goods being transported to them will arrive.

  1. Helps to improve safety

The safety of both driver and goods on transit has been greatly improved by this. When drivers run into problems the company will know within a short time and can help solve or report the problem. This way, the drivers can get the help they need when they are in trouble. If there is a problem with a vehicle, another vehicle can be sent immediately to the exact location of the vehicle that has problems. This has helped to minimize delays that can eat up the profits of these companies.

  1. Has helped companies to manage maintenance

Telematics create alerts based on mileage, engine use or time. This helps to develop an advanced vehicle maintenance schedule. Vehicles that are properly maintained and serviced will rarely develop mechanical problems that can delay the movement of goods.

  1. Has helped companies earn the trust of customers

GPS fleet tracking has enabled transportation companies to earn the trust of their customers. This is because a company that has GPS tracking systems on its vehicles is able to tell a customer the specific location of goods being transported at any given time. Also, a customer whose goods are being transported can know when his goods are going to reach the desired destination.

Although not the be all and end all, telematics stands out as being the single most cost effective answer to help deliver logistic goals whilst assisting with driver safety and is certainly something that is worth another look into.