Practical Applications of Commercial Vehicle Telematics

Commercial Vehicle Telematics is the convergence of wireless data communications with vehicles equipped with embedded communication devices and some form of back-office management system, which processes the information sent to and from the embedded device in the mobile vehicle. Commercial Vehicle Telematics systems utilize wireless communication to manage remote assets such as vehicles, equipment and personnel. The systems can also monitor automotive navigation systems, driver behavior, engine statistics, provides safety and security measures, and traffic and road conditions.

Vehicle telematics solutions are gaining popularity globally. According to the results from DigiCore's Vehicle Tracking Survey 2008 - conducted through 150 fleet decision makers and influencers in the United Kingdom, more than one in four fleets now uses tracking technology to monitor their vehicle operations.

A 2008 Quarterly Analyst Briefing presented by the consulting group, Frost & Sullivan, reported that between 2007 and 2013, the North American commercial vehicle telematics market appears poised to achieve similar growth with an attractive subscriber base, increase in unit shipments, and growing market participation from truck makers and tier-1 suppliers. Breakthroughs in technology and application development coupled with alterations in regulatory and operating conditions have helped create this favorable growth environment.

As spiraling fuel costs and new, tighter legislation continue to apply operational pressures on the road transport industry, there is a need to better educate commercial transport operators of the benefits of vehicle telematics. According to the DigiCore survey, more than half of companies not using vehicle telematics have considered investing in the technology, but more than a third are still unaware of the benefits it can provide. Furthermore, less than half of these operators thought tracking could benefit their business or offer a return on investment.

Commercial Vehicle telematics provide an extremely useful, cost-saving, and liability limiting, logistics management tool for commercial fleets that transport goods or people.

The comprehensive benefits of this mobile communications technology are maximized in some of the following ways:

• Computerized Maintenance & Remote Vehicle Diagnostics
• Vehicle Tracking and other location-based services
• Remote Fleet and Asset Management
• Loss Prevention
• Hands-Free Feature Functionality
• Cold-Store Freight Monitoring

Remote Diagnostics provides asset protection and value preservation by detecting potential electrical or mechanical problems before causing damage to the vehicle or endangering the driver and/or cargo. Upon detection, the vehicle's computer will wirelessly notify the manufacturer or other assigned headquarters. The computer can also be prompted to send an email notification directly to the vehicle owner or driver. This reduces downtime and the potential for catastrophic failures.

Vehicle tracking, which requires the installation of both a GPS receiver and a modem-like device, allows remote tracking of a vehicle's location. Communication is enabled between the vehicle and central command that has applications such as vehicle tracking software, programmed to monitor such aspects of travel as location, speed, and driver behavior. Fleet operators commonly use vehicle tracking for fleet management functions such as routing, dispatch, on-board information and security.

Fleet management brings vehicle tracking to the next level with the central management of a company's entire fleet of service vehicles. Economy and efficiency are maintained by consolidating aspects of management from fuel and finance to health and safety.

Loss prevention of fleet vehicles is particularly crucial to a company's livelihood. Abandoned vehicles can be easily found, and in the case of theft or reckless driver behavior, a fleet vehicle can be disabled from a central command.

Companies that transport FDA-regulated cargo must adhere to strict standards and also be able to prove adherence in the face of audit or litigation. Cold-store freight monitoring is a real-time log of cargo conditions and temperature status. If the vehicle's cargo-hold fails to meet required protocol, this type of mobile wireless monitoring will provide warnings and alarms to the driver, the company, or both.

The need for the adoption of commercial vehicle telematics is felt more than ever now by logistics providers and trucking fleets. Rising fuel costs, homeland security mandates and end-to-end real-time freight and resource tracking expectations by consumers, require a change to a more efficient business model. More fleets are increasingly recognizing the value proposition of commercial vehicle telematics and their ability to provide attractive return on investment and are moving down this road.