What is Telematics? (UPDATED JULY 2020)
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How do Telematics Systems Work?

- The vehicle has a telematics black box installed in it (“In Vehicle Unit”). This device almost always includes GPS tracker hardware. It may also include an accelerometer to record harsh braking or acceleration. The IVU is usually connected to the vehicle’s On-board Diagnostics via the OBD-II port. Sometimes it is also connected to other non-standard sensors or monitoring systems.
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The mobile phone network transmits the information to the data centre. The owner may also opt for a backup Iridium connection if they expect use in remote locations.
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A fleet management system receives the data in an online data centre.
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The data is then accessed by the user on the public internet.
Business Benefits of Telematics
Fuel Tax Credits Optimisation
Reduced Maintenance Costs
Increased Return on Assets

Improved Productivity
Reduction in Fuel Costs
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Tracking the idling state of engines
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More effective route planning
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Reduction in unauthorised vehicle use
Better Communication
Better Safety, Risk Management, and Legal Compliance
Improved Customer Service
Reduction in Administrative Costs
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Fuel tax credits
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Chain of responsibility
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Electronic work diary (for driver rest periods)
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Electronic logbook (for FBT claims)

BY MATTHEW PEARSON - TECH WRITER, FLEET MANAGEMENT SYSTEMS ADVOCATE AND TELEMATICS EXPERT
LAST UPDATED 15 JULY 2020
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