Telematics and fleet management software are often mistaken to be the same. And while both are favorite tools in the fleet industry, they serve different purposes for your business. Without proper knowledge on the matter, you might end up choosing the wrong solution instead.
To make sure you find the right tool for your company, you must first understand how each can help optimize and improve your fleet management. This would require you to check out their respective capabilities, features, and functions. By arming yourself with sufficient knowledge, you can figure out which one would best suit your business.
With that, here’s a telematics vs fleet management rundown to showcase their differences in terms of what they can do for your fleet management operations.
What is telematics?
Telematics is the combination of telecommunication and informatics in the fleet industry. It lets you send, receive, and store information across communication devices easily and instantaneously, allowing you to track your drivers’ or vehicles’ locations, performance, and conditions. Likewise, it could also gather other information related to your vehicle such as its speed, fuel consumption, weight load, gears, braking system, and maintenance.
Most of the time, telematics is in the form of black boxes installed inside your vehicles. But since 54% of people nowadays use mobile phones for GPS tracking and navigation, GPS telematics has become even more accessible than before. You can also use the GPS system of your smartphones and integrate it with your telematics. With that, you get real-time access to your fleet’s whereabouts and status.
How can telematics help your business?
Usually, the data collected by your telematics platform is sent directly into your company’s system, which the rest of your organization has access to. You can then use this data to improve your processes and make smarter decisions for your business growth. This could help you cut down on fuel costs, car repairs and maintenance fees. Likewise, it allows you to monitor your drivers’ behavior and ensure they’re performing their duties properly.
Additionally, telematics can also benefit your drivers. For one, it can immediately notify them of any damages or issues with the car while on the road. This could help ensure their safety and reduce road accidents while also preventing further damage to your vehicles.
What is fleet management software?
This is where fleet management solutions come in. This software is more than just a database of information about your vehicles and drivers. It can also assist you with administrative processes involved when managing your fleets. It may also have comprehensive reporting tools which can automatically analyze data for you.
Fleet management software usually includes vehicle tracking, mechanical diagnostics and monitoring, driver behavior analytics, maintenance scheduling, parts and service histories, and operating expenses. It can also keep track of any compliance documents such as insurance, licenses, and tax. In short, this software has the tools you need to effectively control your fleets’ entire lifecycle.
When should you use fleet management software?
The various fleet management software features have made it a more advanced version of the telematics system. So if you are looking for a more sophisticated and all-around tool to assist you with managing your fleets, this one would be right for you.
Unlike telematics, fleet management software goes beyond simple data gathering. It can optimize the complex processes of your fleet operations. It doesn’t just focus on your drivers and your fleet. It caters to your organizational and financial needs as well. Features like invoicing and billing, for example, are available in some fleet management software. You can even integrate it with your other business intelligence solutions to have your entire systems streamlined.
Which one should you choose?
To answer this question, you must first determine your company’s needs. After all, not all businesses in the fleet industry offer the same services. The sizes and types of vehicles companies use for their operations also vary. By determining the gaps in your business processes, you can find out which of the two could best help you overcome them.
On the other hand, you also have the option of not choosing at all. Some businesses use both systems for their operations by integrating their telematics into their fleet management software. This would allow your fleet management software to access the data gathered by your telematics. As a result, you can have better data analytics and more streamlined fleet management operations. You can browse through this fleet management software guide by CompareCamp to find out which ones have such features.
Spot the difference
Managing fleets can be tough. And as your business grows, the more you would need to make sure everything is in order. Fortunately, you can choose between a fleet management software or a telematics system—or even both—to help you with the task.
These two systems are often mistaken for the other. However, both have different purposes and functions. As a result, each has its own way of helping you with your fleet management operations. So keep in mind their key differences so that you’re sure to end up with the right tool for your business.