Telematics, which enables multidimensional, real-time tracking of vehicles, has become an increasingly important tool for the efficient management of corporate fleets in recent years. Modern fleet management solutions combine telecommunications and information technologies dominating the modern world, providing everyday efficiency and security – that is why 50 percent of European businesses have implemented fleet management systems for daily use. This article will discuss how telematics, which has been present since the 1970s, is becoming increasingly advanced and more accessible to smaller businesses, and eventually popped up on the smartphone of drivers.
According to a 2019 report by the European Commission, the transport sector is one of the largest users of telematics in the EU, with approximately 5 million heavy goods vehicles equipped with telematics systems in member states. The report states that around 50% of European transportation companies already have a telematics system in place.
The general experience is that telematics solutions are typically used by medium and large enterprises. The introduction of such systems is usually justified for companies with larger fleets, as the implementation and operation of the systems may require significant resources, thus making the cost distribution more efficient. However, in recent years, smaller and smaller businesses with less than 50 employees have also recognized the benefits telematics offers in terms of more efficient fleet management and cost reduction. Fleet management services are now used by businesses that do not primarily deal with transportation but have a corporate vehicle fleet that they regularly use for their operations.
Smaller companies need to assess their needs and weigh the costs and benefits of introducing telematics to decide how much using telematics systems is worth to them. It is a serious, potentially regular investment to use and install such systems. There is a traditional tool for this task, the GPS tracker, which is installed in vehicles and performs measurements there. These devices must be purchased or rented at a high monthly cost, and a predetermined commitment to the service must be made for a set period of time. Subscription fees are paid for each vehicle, and roaming charges and installation costs may also add to the cost.
It is important to note that companies with fleets but not using telematics suffer administrative losses. The advantages of fleet management systems include cost-effectiveness, better planning - in time and money - as well as the ability to save fuel by more accurate and efficient driving. Companies with more accurate data can achieve savings through more cost-effective operations, such as reducing fuel consumption and better planning for vehicle maintenance. Telematics devices can help more accurately plan vehicle routes and scheduling, which can improve customer management, provide a higher level of customer service, and improve employee efficiency and time management. Additionally, telematics services analyze vehicle data such as speed, RPM, and other engine important parameters. This allows for the optimization of fuel consumption and more efficient operation of vehicles.
With our development called urbaniqe, we have created an intuitive digital fleet assistant supported by artificial intelligence, specifically designed for small and medium-sized businesses with smaller fleets. We have developed the application uniquely for smartphones, so we neither require upfront investment nor claim for loyalty period, and made it available at affordable prices. With urbaniqe you are now able to immediately track drivers and their assigned vehicles, monitor the costs of the cars used in the company, as well as easily separate business from private usage. The system automatically documents the routes taken, creates reports, and past routes can also be replayed any time later to show instances of speeding, driving style, average fuel consumption, and emissions. As a result, mileage is decreasing accompanied by improving driving style leading to significantly less fuel expenses.
Source: https://ec.europa.eu/transport/sites/default/files/studies/european-electronic-toll-service_en.pdf