When calculated according to weight, trucks move more than 72 percent of the nation’s freight, or almost $940 billion in shipments every year. However, inefficiencies still greatly cut into the bottom line. While policies and practices have come a long way, there is still a lot of room for improvement.
That is where telematics are making an impact. These innovations are helping trucking companies improve security and fuel efficiency, as well as providing other advantages.
This article explores how telematics can provide cost-reduction solutions in the trucking industry. Keep reading to find out how these systems work and determine if they may be right for your business.
What Is Telematics?
Telematics is a branch of information technology that collects data and then transports it to remote monitors on computers, smartphones, or other devices. It has become a staple of many different industries, including:
- Healthcare
- Manufacturing
- Agriculture
- Construction
- Logistics
- Transportation
- Public safety
For instance, in healthcare, telematics can collect patient data and monitor vital signs. This can give providers more information to help improve health outcomes.
In agriculture, farmers use telematics to monitor soil conditions and equipment performance. In the trucking industry, it most often involves sensors and GPS devices that detect things like location or fuel levels.
Ways Telematics Are Impacting the Trucking Industry
There are several main areas in which telematics is revolutionizing the trucking industry. These all relate to the potential to drive down costs. They include:
- Route planning and fuel efficiency
- Driver behavior monitoring
- Diagnostics and predictive maintenance
- Improved recordkeeping and regulatory compliance
- Cargo tracking
- Improved customer service
Route Planning and Fuel Efficiency
Telematics can provide trucking businesses with data on the location and speed of vehicles. Real-time data can be used to reroute vehicles. Historical data can be useful for planning purposes.
Historical data also can be used to improve and assess the efficiency of using particular roads, including on certain days or times. This information can also be used to plan better routes and improve efficiency.
Telematics can also give managers information on how much fuel it takes to drive particular sections of the route. For instance, it will allow you to look at how fuel consumption on a shorter but hillier route compares to one that is longer but with less elevation change.
Driver Behavior Monitoring
Telematics can offer insights into driver habits. These include speeding, hard braking, and rapid acceleration.
This provides an opportunity to modify driving practices to improve fuel efficiency. It has the related benefit of increasing safety and reducing the chances of accidents throughout your fleet.
Diagnostics and Predictive Maintenance
Telematics can also track other metrics on your vehicle besides fuel. Examples include tire pressure and engine performance.
This can help your team identify potential problems with trucks on the road and plan better for routine maintenance. It can improve the life of your vehicles and reduce the chances of breakdowns.
Improved Recordkeeping and Regulatory Compliance
Besides keeping track of vehicle information, telematics can make record-keeping easier and more accurate. It makes it simple to view driving hours of service (HOS), which is vital to freight operations. It allows you to better visualize and create schedules for your drivers.
Simplified recordkeeping can also ensure adherence to government regulations. This can reduce your chances of fines or the chance of having to suspend operations.
Cargo tracking
Besides the function of your trucks, telematics can help monitor your cargo as well. You can use them to check temperature and humidity, which can ensure the integrity of food products or pharmaceuticals.
Improved Customer Service
It is easy to see (though worth pointing out) how improved efficiency can translate to happier customers and contractors. Increased reliability lets them anticipate deliveries with greater precision. This can help your reputation in general, attracting new customers and growing your business.
What To Look for in Telematics of Trucking
To identify the best telematics devices and software for your trucking business, there are a few basic qualities to look for. These are:
- Accurate real-time monitoring
- Integration
- Scalability
- Customer support
Accurate Real-Time Monitoring
Some telematics programs provide very basic information and may experience a lag in doing so. For the best results in fleet optimization, seek out programs that provide accurate monitoring of fuel and vehicle systems that you can access in real-time. This will enable you to be quicker and more decisive when making adjustments.
Integration
The next thing to look for in telematics technology is the ability to integrate with existing systems. Examples include fleet management and enterprise resource planning (ERP) systems.
Consider systems that are easy to set up and maintain. You also should make sure the software is compatible with your existing hardware, including computers and smartphones.
Scalability
Think about not just where your business is today but where it is heading. Going with a telematics program that can easily add components means you will not be buying a whole new system if your fleet grows.
Also, make sure the provider has monitoring devices for all aspects of the business you require. This will keep you from having to supplement components or add another software program down the road.
Customer Support
A final consideration when shopping for telematics is quality customer service. Look for providers who have a reputation for offering outstanding customer support. That way, if there are problems that arise that are beyond your or your staff’s expertise, you can have the peace of mind that you will have assistance for troubleshooting the issue.
Find Telematics for Your Trucking Business
Now that you have an idea of how telematics for trucking is helping with operational costs, you can determine if it is right for your business. With minimal upfront investment and effort, you can actualize huge transportation cost savings, including better fuel efficiency, over time.
EnVue is a leading provider of advanced telematics and custom trucking fleet management technology. Our goal is to provide integrated, intelligent, data-driven solutions, along with exemplary customer support, for our customers. Reach out to us today to schedule a free consultation.
