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In this day and age, the fleet industry is worth billions of dollars. Due to the rapid increase in transportation operations, more advancements are happening in this field. While talking about the management solution for fleet operations, there are two choices, telematics solution and fleet management software. Both the options can effectively serve the purpose depending on various factors like the business’s scope and scale.

Although there is a lot of overlap between the telematics and management solutions, we consider both distinct. Due to this reason, we can discuss their functionality and effectiveness separately. Which is the right solution to choose between them? If you also have this question in mind, this blog is worth reading.

Difference between Telematics System and Fleet Management Software:

Fleet Management:

The management system deals with the administration aspect of commercial vehicles. It includes data storage of vital records including the financial transaction, vehicle updates, driver availability etc. The management solution can be deemed a digital diary that helps managers store and retrieve any document. Some of the records that you can keep are given below:

  • Vehicle buying and selling
  • Vehicle Compliance
  • Vehicle and Drivers’ information
  • Fleet Policy
  • Fuel Transactions
  • Financial data
  • Maintenance Tasks

A fleet management system controls the entire fleet lifecycle covering all operations. Modern solutions integrate other systems like financial and reporting tools to widen their functionality. It helps the managers to have all the required information in one place, making their job much convenient.

Telematics System:

Telematics involves a lot of fields including telecommunication, electrical engineering, computer science, vehicular technologies etc. A telematics system is mainly concerned with data sharing rather than data-keeping. It uses devices (black boxes) installed in the vehicles to fetch data and transfer it to the central monitoring software. The transmission of data occurs via a server in real-time. It provides instant updates to the manager about any activity.

The telematics solutions perform functions like:

  • Location Tracking
  • Driver behavior Monitoring
  • Engine Diagnostics
  • Delivering Odometer Readings
  • Vehicle Status monitoring
  • Fuel Monitoring
  • Route Planning

Telematics is more useful in the monitoring aspect of the operations. It informs the managers about vehicle activity in real-time, helping them make timely and effective decisions.

Integration and its benefits?

While administrating the fleet operations, there is a need for a mechanism that combines both the monitoring and management aspects. Therefore, an ideal platform is the one that merges management and telematics technology. The integration of the systems provides a lot of operational benefits and some of the important ones are as follows:

  • Better route scheduling is possible through predictive analytics which designates the best possible path to the driver.
  • With diagnostics, the cause of car’s faults can be identified quickly, resulting in timely maintenance.
  • The real-time alerts inform the managers about the vehicle misuse helping in immediate accountability of the driver.
  • With real-time data sharing, managers can maintain fuel transactions’ record and compile detailed reports.
  • The data analytics help analyze the excessive expenses helping in cutting down the overall cost of operations.
  • With open communication line, the drivers can share their problems with managers in real-time, providing them with instant solutions.
  • The sensor integration ensures eco-friendly driving preventing the risk of accidents.
  • With organized and planned trip management, the drivers can be informed in advance to boost productivity.

Which solution is better?

For getting better control of the fleet operations, an efficient system is necessary. Choosing between telematics solution and management system is nothing but a lost cause. The reason behind it is that both of them go hand in hand. One system cannot be successful alone without the integration of the other. Evolving transportation industry calls for once and for solutions to all the operational needs.

A solution with integration of both fleet management software and telematics system is the ideal choice for running effective operations. It will not only make things convenient but will also ensure efficiency and productivity.


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