Transportation Telematics Systems: a Surefire Improvement for Your Logistics Business

Hryhorii Sirenok
Project Manager at TRIARE
10 min read
Transportation Telematics Systems: a Surefire Improvement for Your Logistics Business

Fleet telematics systems are an innovative way to achieve the planned goals in the short term due to the high level of automatization. Learn how you can enjoy the benefits of remote monitoring of vehicle conditions for efficient operation.

Introduction. What exactly is telematics?

In the broadest sense, telematics vehicle tracking systems represent a combination of telecommunications and computer science. Nowadays, this concept is commonly used to refer to solutions in the management of commercial vehicles and the establishment of logistics transportation.

Wireless telematics devices collect and transmit data related to any features of vehicles. Advanced companies use telematics software for fleet management to complete the following tasks: 

  • Coordinate the work of vehicles
  • Gain a comprehensive view of the condition, profitability, and performance of vehicles
  • Create effective logistics routes
  • Automate enterprise fleet management processes
  • Enjoy additional business benefits

As reported by Fortune Business Insights, in less than the next eight years, the worldwide commercial telematics industry is expected to rise from $40.18 billion to $158.31 billion. This is due to the positive impact of innovative technologies on all business processes. Companies can use the properly developed software to solve a wide range of issues caused by the need to manage many vehicles. 

What features can telematics systems give you?

How does a telematics system work?

The vehicle telematics systems include tracking devices. They are typically installed directly into vehicles by providing the ability to send, receive, and store telemetry data. The gadgets can connect to the transport via the following methods: 

  • Vehicle’s on-board diagnostic system (ODBII)
  • CAN-BUS port with a SIM card
  • Built-in modem provides wireless communication

The devices collect GPS data, as well as a variety of other vehicle-related information, and transmit it via GPRS, 4G, and cellular network or satellite communications to a centralized server. It interprets the data by sharing it with the logistics or managers through secure websites and applications optimized for smartphones and tablets. Telematics data can display the following information: 

  • Location
  • Speed
  • Idling time
  • Sudden acceleration or braking
  • Fuel consumption
  • Vehicle faults

By analyzing specific events and patterns, this information can provide a detailed overview of the entire fleet. This advanced approach to monitoring business processes allows companies to save money and increase profit. 

How does a telematics system work?

Key features of telematics systems in transportation

Most modern manufacturers of commercial cars install telematic vehicle tracking systems in their cars on the conveyor. If the car is not supplied with built-in telematics, non-original devices are available for installation. They can work from the battery or the internal electric system of the cars.

Fleet telematics systems involve the following key features: 

Tracking vehicles. Vehicles can be monitored using a combination of GPS satellites and receivers, GPRS networks, and cloud computing. The receiver loads satellite information and processes it for the driver’s navigation system.

Tracking trailers and other assets. Fleets can attach GPS trackers to trailers and other non-motorized objects to guarantee they will not disappear. The system can also be configured so that instant notification is sent to the manager’s mobile device if the trailer or asset moves without permission.

Improvements in vehicle maintenance. Management of the asset life cycle can be improved by using motor parking for tracking hours of use and planning preventive maintenance, as well as tracking warranty restoration, the hours of engine operation, and tracking service records. A fleet manager can reduce costs and maintain vehicles in safe working conditions, controlling the diagnosis of the engine.

Tracking security. Managers can use the fleet’s telematics to track the speed and location of vehicles, as well as dangerous driving and violations like the non-use of seat belts. Telematics provides data on each aspect of the vehicle’s operation, helping fleet managers understand where it is necessary to take measures to prevent accidents.

Evaluation of insurance risks. Insurance companies can use telemedicine to track drivers’ behavior, which allows them to more accurately determine the risk factors and correctly adjust the tariff rate. 

Telematic devices can also report when the vehicle is used outside the designated zone. The opportunities of the systems are unlimited by prioritizing the needs and preferences of the users. 

Vehicle Features

What should you know before implementing a telematics system?

Manufacturers collaborate with telematic service providers to ensure the convenience of end users. In the coming years, the automotive industry will probably continue to develop “smart cars” using telematics to provide the best results for their customers. These systems will also benefit from the developing Internet of Things (IoT) that can connect cars to the smart system of cities and intellectual transport technologies. 

Introducing fleet telematics systems requires a well-thought-out preparatory process analyzing the software’s capabilities, the cost of its development and operation. These indicators depend on the decision on fleet management. A simple GPS focus on the card is a relatively cheap option that gives too little practical information. The combination of a fully integrated telematics solution with other devices, such as tachographs, video recorders, and navigators, and tracking the actions of drivers driving is more expensive. However, the providers can expect a much greater payback of investments.

This approach gives a deeper analysis of the work of the fleet and helps to evaluate how all resources are used. Customized information panels allow the companies to easily track progress in achieving key performance indicators or budgets. In the long run, the GPS settling behind the fleet will help to identify hidden expenses and potential for increasing the performance and efficiency of the entire organization. The system costs invested funds.

Implementation telematics system

Main stages of development and implementation of a telematics system

Telematics transport tracking systems are ready for exponential growth since new applications are being developed to use the advantages of modern GPS devices and the widespread use of mobile devices. More and more fleet owners reveal the need to monitor activities to control costs, increase performance, improve reporting, and ensure full compliance with government decisions.

The main stages of development and implementation of telematics systems include the following steps: 

Initiation. Analysis of the client’s activities and certain vehicle fleets is the main factor for creating technical specifications for software development. It involves an examination of the company’s strengths and weaknesses to implement a productive fleet management environment.

Planning. The developer draws up a mandatory list of software innovations to implement the project. This stage involves agreeing on budgeting and expected results.

Execution. Software development can take different amounts of time and require various resource costs. However, all actions should lead to obtaining a high-quality digital product to optimize the functioning of the fleet.

Control. Implementation and testing of software is an important stage for identifying factors requiring modernization and improvement.

As the owners increasingly automate different “sections” of the car park, including personnel management and business management software, telematics becomes an integral component of all these operations. 

Development telematics system

Benefits and advantages of implementing a telematics system for a logistics company

Telematics transport tracking systems can become an endless source of additional opportunities for business owners. This point is especially evident regarding increased competitive advantages and optimization of basic work processes. 

Telematic technologies can help fleets achieve the following advantages in key areas: 

Reducing fuel costs. Telematics will help identify the areas of losses, including the idle passage of a car or fuel waste. This approach allows fleet managers to solve problems affecting fuel efficiency and net profit quickly. It can also help the management plan the most effective route for each driver to reduce unnecessary mileage.

Increased safety. Constant driving monitoring allows managers of a car park to train drivers and reduce unwanted habits, such as speed excess or sharp braking.

Increased performance. GPS data allows drivers to avoid road delays and plan work in severe weather. Managers can quickly and easily connect any new or additional visits to the facility with the nearest car and instruct drivers about the most effective route.

Effective salary management. Tracking the exact time of starting the vehicle from the beginning of the day until it stops, the fleet managers receive an accurate automated accounting for the duration of the employee. This method helps business owners make sure that employees receive accurate payment. 

Any company can discover the specific advantages of using key features of telematics systems. In this case, the specialists developing digital products can offer various solutions to achieve productive results. The optimization process is the first step to taking business to a new level of development. 

Advantages of telematics system for transport business

Main risks and disadvantages of implementation of telematics system for a transport business

Telematics transport tracking systems require the involvement of highly qualified specialists to achieve the desired goals. The absence of the necessary attention to detail can lead to the emergence of the following risks and disadvantages: 

Non-recoupment. The wrong approach to developing specific software can lead to unproductive investments. A step-by-step and planned project initiation process helps avoid these problems.

Lack of adaptability. Any digital products in this area require systematic testing and improvement. This approach must be envisaged from the very beginning. Developer support allows the clients to add new software options and functions gradually as they are needed for further use.

Difficult to use. The software should be the primary tool used by fleet employees. These specialists must undergo certain training to use the digital tools effectively. Otherwise, the complex software will only slow down their work.

Any innovative technologies need a proper introduction for their effective functioning. In this case, the experienced developers can support their clients at all stages of project realization. 

Disadvantages of telematics system for transport business

Real use cases of the telematics system in large transport companies

Telematics vehicle tracking systems provided specific companies with an opportunity to achieve the desired business goals. They became possible thanks to specially developed innovative technologies for managing fleet processes.

MaliaTec is a company that managed to improve the work of one of the largest logistics carriers in the UAE. Transcorp International enjoyed the introduction of custom tracking systems needed to achieve advanced cold chain transportation. MaliaTec used innovative GPS sensors and identification systems for complete process monitoring.

Also, CarCops OU implemented vehicle telematics systems to prevent fuel theft in Europe by showing effective results from using the software. This approach provides an ability to avoid unforeseen expenses as the basis for proper fleet budgeting. 

The number of successful cases aimed at the introduction of telematics in the activity of fleets will increase every year. Any company can reveal useful options to benefit its business. 

Do you know how telematics systems can optimize your transport company’s budget?

What can TRIARE offer for a logistics business?

TRIARE allows clients to receive high-quality custom products to increase the effectiveness of functioning fleets. Introducing telematics transport tracking systems requires comprehensive skills to increase the enterprise’s productivity. In this case, experienced developers can meet the following needs of the different business owners: 

  • Automate complex processes
  • Minimize the budget for paying a large staff of employees
  • Extend the duration of transport operation
  • Get additional profitability
  • Increase the company’s competitiveness

TrakLogistics represents a successful project developed by TRIARE to implement an advanced system of management and control in the logistics area. As a result, Cargo Trak enjoys digital innovations that have a tremendous impact on the brand’s business processes. 


TRIARE provides clients with an opportunity to enjoy the various ways to use fleet telematics systems. The developers pay special attention to the company’s features by introducing highly personalized digital products. Such smart solutions become a foundation for increased competitiveness and profitability due to the careful use of corporate resources. The custom software allows managers to become more effective by automating complex routine processes. Access to information about vehicles in one click creates a productive corporate environment.

Hryhorii Sirenok
Project Manager at TRIARE