GPS vs. Telematics Important Distinctions and Business Uses

If you are a business owner, you probably have already lived in the world of fleet management. But have you thought about the difference between GPS and telematics?

The words may look the same, but they have different meanings as well as various utilizations.

This article will be showing the differences between GPS and telematics, state their business applications, and explain in detail the examples that would help you to benefit from the use of these technologies in your operations.

GPS, or Global Positioning System, works by using satellites that send out signals to devices to determine their exact location on Earth.

It is composed of a constellation of no less than two dozen satellites that are constantly orbiting our planet.

Think of GPS as a map that shows you where the assets are at any time.

Use Cases

• Navigation Business operations augment the use of GPS in vehicles to navigate vehicles with the best routes. With a route learned, fuel and time are saved.
• Tracking Companies are keeping track of the travel and condition of expensive objects, like delivery trucks or construction equipment. This tracking not only helps improve security but also minimizes theft.

The Geotab survey showed that 87% of the businesses measured GPS tracking as an important element of operational performance.

Telematics is a technology that has to do with communication and car-tracking systems that in their turn, provide data from a vehicle. It utilizes GPS data but extends it far beyond that. It collects information on vehicle performance, driving behaviour, and maintenance needs.

Use Cases

• Fleet Management Vehicle operators are the people who use telematics in order to watch the vehicle's health. Such monitoring as this helps decrease unplanned repairs and maintenance expenses.
• Driver Analytics The companies are analyzing driving habits like the use of speeding and braking. As a matter of fact, drivers use this information to gain insights into safer driving practices, thus causing the three of them to be safer.

A study by Geotab indicated that fleets that use telematics can reduce costs by up to 14%.

Despite the fact that GPS and telematics are similar in some respects, they also have a number of distinguishing characteristics that separate them from each other and from GPS. You are supposed to be clear about these differences

• Functionality GPS only performs the location tracking function, whereas telematics is highly detailed and displays the vehicle data including performance measures.
• Data Types GPS basically captures location-based data; on the other hand, telematics collects different data, such as the speed used, the fuel usage, the engine diagnostics, etc.
• Business Impact One of the purposes of GPS navigation is the improvement of the routes that lead to the destination. The use of telematics results in better monitoring of vehicle and driver health thus improving management efficiency.

There are some businesses which only require basic location tracking and in cases like this, GPS is sufficient to provide the service.

Telematics is a more comprehensive solution for a company that needs to be more specific in information regarding vehicle and driver performance.

Which technology do you think suits your business model better?

Let's take a more detailed look at how each of these technologies contributes to different business sectors.

Fleet Management

Telematics if applied in fleet management provides the most benefits.

The vehicle's health check and driving behaviour as well as driver watching imaging, and fuel consumption analysis give the company more freedom and the costs are reduced.

Insurance

Moreover, telematics enables the insurers to adopt the per-mile insurance policy. It simply charges the customer according to actual vehicle mileage which he has covered.

As per the National Association of Insurance Commissioners study, telematics-based insurance can save up to 30% for careful drivers.

Logistics and Transportation

GPS in addition to telematics is used primarily to resolve six main issues leveraged by the logistics department. Through GPS organization maintains delivery continuity while telematics along with driver performance and vehicle tracking monitoring is handled.

• Optimized Routing Real-time updates are provided by the GPS, therefore, drivers can easily avoid traffic jams and deliver the products faster.
• Performance Monitoring Telematics to monitor fuel efficiency and ensure the car is being used as the manual says.

According to the statistics, over 75% of businesses in the shipping sector are using telematics-based methods to enhance their work process.

Construction

In the construction field, the placement of equipment is the key to productivity.

Through GPS users can track the dynamics of machinery at the actual site in real-time.

Telematics gives you information about your car that you might need for maintenance issues that can be predicted beforehand.

• Equipment Tracking GPS is used to find out the exact location of valuable machines in larger job sites.
• Maintenance Alerts Telematics is the system which is notifying managers when the equipment is due for servicing, this leads to the avoidance of downtime.

These applications have made the most efficient technologies to be used for increased safety and productivity at construction sites.

Delivery Services

For the services that are involved in delivery, quick transportation of goods is critical. The GPS device can show and change instantly the delivery routes, thus avoiding delays.

In parallel, the use of telematics to the car performance data which are from driving aids to drivers for achieving fuel efficiency.

• Efficient Delivery GPS helps the driver go to the shortest path.
• Driver Monitoring Telematics produces information that can benefit drivers to come up with a better driving manner.

While you are thinking about the differences between GPS and telematics, try to find the answers to the questions below

• Is the location the main driver, or do you need the whole data for comprehensive exploration/making decisions?
• What are the applications that my business gets the maximum benefit from?
• Which is the technology that is consistent with my long-term plans?

They will give you a better capability to think and to make a decision on what technology is best for your needs in business.

You have by now understood the cardinal differences between GPS and telematics.

Each technology is a tested and approved advantage for a different business sector. They can reduce your costs, make your work more efficient, and improve your safety.

For further details on how to harness the power of GPS and telematics for your business, visit Lumyri.

Are you ready to build a greater industrial empire?

Give us a call today to get more information about how Lumyri can be of service to you!

What is the primary difference between GPS and telematics?

GPS is concentrated on location tracking, whereas telematics involves GPS plus vehicle performance and diagnostic data.

Can a business benefit from using both systems together?

Certainly! Through it, managers get 360-degree insights that enable them to boost their operational efficiency.

How does telematics improve driver safety?

This, in turn, gives the companies the chance to offer feedback to drivers for their driving to be more responsible.

Is GPS data accurate?

GPS data, in general, is authentic up to 10 meters, making it sufficient for the majority of tracking applications.