This article is featured on our fleet resource, the Clean Fleets Hub, in collaboration with Michigan EIBC.
Telematics is the method of monitoring a fleet’s activities. Telematics often uses a combination of hardware and software solutions to monitor vehicle activity, including location, speed, idle time, and more. This information is critical for effective fleet management, especially as fleets consider switching to alternative fuels and electrification.
How it works
Typically, a small GPS device is installed in the vehicle and reports vehicle data to a centralized fleet management system. Oftentimes, this information can be monitored in real time and used to analyze data over time to understand and optimize operations across the fleet.
For example, telematics can show which vehicles spend the most time idling, which routes are the most fuel-intensive, and where maintenance issues are emerging. With this data, managers can optimize routes, reduce fuel use, improve driver behavior, and lower operating costs, all before making major investments in new vehicles.
Many telematics systems can also integrate with other software, such as maintenance scheduling, dispatch, and safety compliance tools, creating a comprehensive view of fleet operations.
Fleets of all sizes use telematics for a range of reasons, including:
- Monitoring vehicle location and driver activity in real time
- Reducing fuel costs through route optimization and idle reduction
- Scheduling preventative maintenance based on actual use
- Improving driver safety and efficiency through feedback and coaching
- Supporting decisions about future vehicle purchases, including cleaner fuels and EVs
How Telematics supports fleet decarbonization
Strong data collection is the foundation for successful fleet change management. Without good data, fleets often struggle to make informed decisions about driver training, vehicle replacement, and charging infrastructure. Telematics fills that gap by providing the insights needed to plan an efficient and cost-effective transition.
- Identify the Right Vehicle for Each Route
Telematics helps determine which vehicles are best suited for electrification or alternative fuels. By analyzing mileage, dwell times, and daily route lengths, fleets can identify routes that fit comfortably within an EV’s range or match the fueling characteristics for alternative fuels.
More resources on vehicle selection are available on our Funding Hub. - Optimize Routes
To electrify routes effectively, fleets need to understand how far vehicles travel, where they idle, and what terrain they cover. Telematics can reveal opportunities to consolidate trips, reduce stops, or plan charging during natural downtime, like a lunch break. Some telematics platforms can even suggest charging schedules or simulate how an EV would perform on a given route. - Improve Driver Efficiency
Driver behavior significantly impacts fuel use. Telematics can flag patterns such as harsh braking, speeding, or excessive idling, offering targeted coaching opportunities. Even small improvements in driving efficiency can translate into measurable savings in both fuel and maintenance costs. - Enhance Charging and Energy Management
Once a fleet begins adding EVs, telematics and charging management systems work together to optimize energy use. Data on battery state of charge, duty cycles, and downtime help determine the most efficient times to plug in and avoid demand spikes that increase charging costs.
Learn more about charge management in our complementary blog: Managing your charging to lower costs and meet your business goals
Getting started with data collection
If your fleet doesn’t use telematics yet, start small. Even simple data collection, like tracking routes, idle times, and fuel use, can offer immediate insights and prepare your organization for future vehicle transitions. Over time, layering in advanced analytics, route optimization, and charge management can help unlock even greater savings.