This guide outlines in plain language how telematics works in different ways, and the benefits it offers.
Telematics deployment in fleet management refers to the use of digital technology to collect, send and analyse data from vehicles. In simple terms, it helps businesses keep track of their vehicles and other assets, understand how they are being used and make better decisions about safety, efficiency and maintenance. It combines GPS tracking with information taken directly from the vehicle’s internal computer systems.
How telematics works
A telematics system usually starts with a small device fitted to the vehicle. This device reads data from several sources:
- GPS satellites, which provide real-time location, speed and direction.
- The vehicle’s onboard diagnostics system (OBD or CAN bus), which gives data such as engine performance, fuel usage, idling time, harsh braking, rapid acceleration and error codes.
- Optional sensors, such as those that monitor temperature, load weight, door opening, or fuel levels.
The device sends this information through a mobile data network (similar to how your phone sends data) to a secure online platform. Fleet managers can log into this platform on a computer, tablet or phone to see live vehicle positions, past trip histories, alerts and reports. This helps them understand what is happening across their entire fleet at any moment.
Some telematics systems also support two-way communication. Managers can send messages, job updates or new routes to drivers. The system can also trigger instant alerts, such as if a driver speeds, brakes harshly, enters a restricted area, or if a fault occurs in the engine.
What telematics is used for
Telematics helps fleet managers:
- Improve driver safety and reduce risky driving.
- Cut fuel costs by identifying unnecessary idling or poor driving behaviour.
- Reduce maintenance costs by detecting faults early and scheduling servicing.
- Increase productivity by choosing better routes and reducing downtime.
- Keep accurate records for compliance, such as working hours or chain-of-responsibility requirements.
- Protect assets through anti-theft tracking and tamper alerts.
Different types of systems
Plug-and-play (OBD) devices
These devices plug into the vehicle’s diagnostic port, usually under the dashboard. They are quick to install with no wiring required. They suit cars, vans and light commercial vehicles. They provide reliable tracking and basic driving-behaviour data.
Hard-wired telematics units
These units are professionally installed and connected directly to the vehicle’s power supply and internal systems. Because they are hidden and securely mounted, they are more tamper-resistant and — whether it’s a vehicle or a trailer GPS tracker — work well for trucks, heavy equipment, buses, mining vehicles and high-value assets. They can support extra sensors and give more detailed and stable data.
Smartphone-based telematics
Instead of a physical device, an app on the driver’s phone collects data using the phone’s GPS, accelerometer and gyroscope. It is cost-effective and quick to roll out, especially for contractors or mixed fleets.
However, it relies on drivers keeping their phone charged, carrying it with them and keeping the app running. Data may also be less accurate than with dedicated hardware.
Advanced telematics with integrated sensors
These systems add specialised sensors for specific industry needs. Examples include:
- Temperature sensors for refrigerated transport.
- Door-open sensors for security.
- Fuel-level sensors to detect theft or leaks.
- Load or pressure sensors for heavy vehicles and machinery.
- Dual-camera systems combining dashcams with telematics data.
These setups are used in industries such as cold-chain logistics, mining, construction, waste collection and long-haul transport.
Asset and equipment trackers
Not all telematics is for vehicles ad trailers. Small, battery-powered GPS or Bluetooth trackers can be attached to generators, tools or construction equipment. These devices report location and movement and help prevent loss or theft. Some can run for years on a single battery.
In summary…
Telematics gives fleet managers a clear, real-time view of their vehicles and equipment. It helps them improve safety, reduce costs, meet compliance rules and run a more efficient operation. The type of telematics system chosen depends on the fleet’s size, the type of vehicles, the industry and the level of detail required.
