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[contact-form-7 id=”10812″ title=”Contact CTA”]Fleet management is an important aspect of any business that relies on transportation. There’s the aspect of keeping track of all vehicles and tracking their movements and then there’s maintenance to keep everything safe before and after each trip. All these play vital for the success of any organization that deals with logistics.
Of course, fleet managers will have to keep track of everything that runs in the whole business. And in the search for keeping everything intact, you would have come across various solutions. Telematics and GPS tracking are probably there at the top of your list.
So to help you and other fleet managers out there, we have compared telematics and GPS tracking. We’ll discuss key differences and some points to think about when picking one of the two.
TLDR
Telematics Technology Pros:
Detailed data on vehicle performance and driver behaviour, which can be used to optimise routes, reduce fuel consumption, and improve safety.
Real-time diagnostics and predictive maintenance, which can reduce downtime and repair costs.
The ability to monitor vehicle utilization and identify areas for improvement.
Tracks vehicle movements more accurately, providing valuable evidence when claiming tax which leads to higher fuel tax credits.
Telematics Technology Cons:
Higher cost due to the need for specialized hardware and software.
The need for more specialized knowledge to analyze data and identify areas for improvement.
GPS Tracking Pros:
Real-time location data, which can be used to optimise routes, reduce delivery times, and improve customer satisfaction.
Relatively low cost and easy installation.
Ability to monitor vehicle movement and ensure on-time deliveries.
GPS Tracking Cons:
Limited data on vehicle performance and driver behaviour.
The potential for inaccuracies in location data due to environmental factors.
So Let’s Explain Telematics First
Telematics is a term used to describe the technology that combines telecommunications and informatics. It’s essentially a system that uses a combination of various hardware and software including GPS tracking, sensors, and wireless communication to collect data on a vehicle’s performance.
Data such as how it’s being driven, its fuel consumption and its overall maintenance needs are some of the most important that is collected. The data collected through different instruments are analyzed and insights are provided afterwards.
Telematics can be used in various industries, including logistics, transportation, and automotive.
Now Let’s Head Over to GPS Tracking
GPS tracking, on the other hand, is a system that uses Global Positioning System technology to track the location of a vehicle which uses the same technology that we have on our smartphones. The GPS receiver inside the vehicle communicates with satellites to determine its exact location and this information is sent to a central server that tracks the vehicle’s movements.
GPS tracking is used in various industries, including transportation, logistics, and delivery.
It’s important to note that GPS tracking works on its own and can be used for various reasons. At the same time, it can also be a part of telematics technology as a whole.
So Where Do They Differ?
One of the key differences between telematics and GPS tracking is the data collection methods. Telematics uses a variety of sensors that collect data on various aspects of the vehicle. These may include fuel consumption, acceleration, braking, and engine performance. After the data is collected, it’s sent to a central server for analysis. That’s when insights into the vehicle’s performance are given. GPS tracking, on the other hand, only collects data on the vehicle’s location.
Another key difference between the two is the complexity when used. A whole set of telematics can be complex which can be a drawback for smaller businesses with limited resources. They would need to train drivers which will cost even more but GPS doesn’t need this since it’s focused mainly on location monitoring. It’s straightforward to use and its system’s simplicity reduces any learning from any driver.
The cost between the two is another significant difference. Telematics is generally more expensive than GPS tracking because telematics requires more hardware and software to collect data. More data needed means more instruments and cost follows. GPS tracking, on the other hand, is relatively inexpensive. It only requires a GPS receiver and a central server to track the vehicle’s location. Once that’s good to go, then you’re all set.
But Which Is Better For Your Fleet?
Each fleet will have unique needs and every fleet manager will think differently but everyone will think of what’s best for the business as a whole. It doesn’t involve just one vehicle, the whole fleet has to be at the centre of every decision. That extends to choosing between Telematics and GPS Tracking and what works best.
When deciding between telematics and GPS tracking, there are several factors to consider:
First, you should determine what type of data you need to manage your fleet effectively. Telematics provides detailed data on the vehicle’s performance and driver behavior and can be used to optimise routes, reduce fuel consumption, and improve safety. GPS tracking, on the other hand, provides real-time location data. This is especially useful for monitoring vehicle movement, ensuring on-time deliveries, and can help in times of theft recovery.
Another consideration is the cost of each technology. Telematics is typically more expensive than GPS tracking. It requires more hardware and software to collect and analyze data so naturally, it’ll cost more. On the other hand, GPS tracking is relatively inexpensive and easier to install.
Finally, consider the level of expertise required to manage each technology. Telematics requires more specialized knowledge to analyze data which means someone with the proper training has to be hired or trained. Compared to that, GPS tracking is more straightforward and requires less expertise to manage.
Are There Types of Fleets That Get Any Specific Advantages?
Different types of fleets benefit from telematics or GPS tracking in different ways.
For example, telematics is particularly useful for commercial trucking companies. It provides data on driver behaviour, such as speeding and harsh braking. This specific kind of data will be more useful to them in the long run and can be used to improve driver safety and reduce accidents. The talk of saving money also comes into play here.
Speaking of money, fuel tax credits can also be claimed at a higher rate for fuel used off a public road with telematics. This is because telematics tracks vehicle movements accurately which provides valuable evidence when claiming fuel tax credits.
In comparison, GPS tracking is more useful for delivery companies. Companies that need to ensure on-time deliveries and monitor vehicle location in real time are the best examples of this. GPS tracking allows dispatchers to optimise routes and reduce delivery times. This can only be possible with real-time data fed to dispatchers. In turn, it can improve customer satisfaction and increase revenue.
Parting Words
Both telematics and GPS tracking have their unique advantages and disadvantages. The choice between the two depends on the specific needs of a fleet. In the end, both telematics and GPS tracking are essential in optimising fleet management. So identify what you need and you can be sure to make the best decision for your entire fleet business.