What are Telematics Devices in Last-Mile Delivery?

The use of telematics devices in last-mile delivery has come a long way in recent years, allowing vehicles to share information about driving behavior, locations, mechanical problems, and more. In short, telematics devices can now offer a wealth of information to improve how fleets operate.

This guide covers the following:

• What are Telematics Devices in Last-Mile Delivery?
• How Telematics Devices Work
• 4 Benefits of Telematics Devices for Last-Mile Delivery
• Implementing Telematics Devices into Your Fleet
• Frequently Asked Questions

What are Telematics Devices in Last-Mile Delivery?

Telematics devices are used in last-mile delivery to help optimize routing, decrease delivery times, and gather important safety data from fleet vehicles. They’re beneficial in improving a fleet’s health, safety, and efficiency while reducing risks and costs associated with managing fleets.

How Telematics Devices Work in Last-Mile Delivery

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Telematics devices can work differently, depending on what they’re designed to do, but are usually installed directly into fleet vehicles. Some telematics devices plug into a vehicle to gather mechanical and driving information, while others use satellite, cellular networks, or Bluetooth signals to pick up data.

These devices can gather information about:

• Mechanical problems affecting a vehicle
• Driver behavior, like quick acceleration, speeding, or hard braking
• Idling time
• Location and route mileage
• How much fuel is used per trip

Once a device collects information, that information is stored on the device and sent to a fleet management software hub for fleet managers to view. These systems may also have connected apps allowing drivers to view their collected data.

4 Benefits of Telematics Devices for Last-Mile Delivery

Companies offering last-mile delivery services can benefit from using telematics devices in their fleets, thanks to data about location, fuel consumption, and more. If you’re a last-mile operator looking to optimize deliveries, consider the following benefits of implementing telematics.

1. Vehicle Routing Optimization

With a telematics system in place, fleet managers can track each vehicle in real-time to plan and adjust routes. Telematics devices can detect potential hiccups in routes, like weather or traffic delays, based on how the vehicle travels, allowing managers to find an alternate route to keep deliveries on track.

The data collected from these devices also offers long-term benefits. Managers can use data from past weeks and months to identify trends, allowing them to adjust future routes for efficiency.

2. Risk Management

With multiple drivers on the road at any given time for last-mile delivery, the risk of an accident increases. Telematics devices pick up risky driving behaviors like speeding or hard braking, which can be key pieces of data for fleet managers to keep tabs on.

Additionally, insurance companies use this data to assess risk for insurance premiums.

3. Ensuring Safety Standards

Because telematics devices allow fleet managers to see how their drivers operate on the road, they offer important safety information to ensure that last-mile drivers meet safety standards set by their company.

For example, there may be a rule in place for vehicles not to travel more than 65 miles per hour, and a telematics device can detect if a driver continuously exceeds this limit.

4. Keeping Tabs on Vehicle Health

Vehicle health is also crucial for driver safety, and telematics devices can continuously monitor this for last-mile fleets. The devices collect information about fuel consumption, mechanical codes, fluid temperatures, and other must-know metrics, allowing fleet managers to determine when and what type of maintenance or repairs might be warranted.

Implementing Telematics Devices Into Your Fleet

Telematics devices are a worthy investment for fleet managers to get the insights they need to take action. From planning better routes to maintaining vehicle health and driver safety, telematics devices have become necessary for efficient last-mile delivery.

The Wise Systems delivery automation platform offers all these features and more, including dispatch software, on-the-go apps for both drivers and managers, and artificial intelligence to improve operational efficiency.

Book a demo today to learn how Wise Systems can optimize your operations for better performance and strategic last-mile delivery planning.

Frequently Asked Questions

What is telematics in logistics?

Telematics is used in logistics to monitor the location and routing of vehicles using a GPS system. Logistics managers typically use the data collected from telematics devices in vehicles to plan and adjust routes for efficiency.

What is an example of a telematics device?

Several types of telematics devices exist, but many fleets use one known as a black box device, which plugs into a vehicle’s onboard diagnostic port. Many telematics devices now exist as smartphone apps, allowing the device to collect much of the same data without plugging anything into the vehicle.

How does telematics help last-mile delivery?

Telematics can improve the efficiency and safety of last-mile delivery by collecting information about driving behavior, vehicle needs, and driving time. Fleet managers use this information to plan optimized routes, ensure drivers meet safety standards, and monitor vehicle health.