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What OEM Telematics Means in Fleet Management

October 10, 2024
Optimise productivity

Fleet management today faces numerous challenges, from rising operational costs to the need for improved driver safety, all while striving to meet stringent carbon emission reduction targets. Importantly, telematics offers an effective solution to all of these obstacles.

Specifically, by incorporating a comprehensive OEM fleet management solution, fleets can tap into a wealth of data from multiple sources. In turn, generating actionable insights which help increase productivity across operations.

As such, it’s essential for fleet managers to understand OEM telematics and its particular role in optimising performance. In this guide, we’ll explain what OEM telematics means exactly, how it works, and the advantages it has for fleets.

What is OEM telematics?

OEM telematics refers to technology built directly into fleet vehicles by the original equipment manufacturer (OEM) during production.

It typically includes two components: hardware - the telematics devices embedded into the vehicle by the OEM - and fleet management software, usually a cloud-based platform that collects, processes, and presents the data from the hardware to the fleet manager.

How does OEM telematics work?

  • Hardware integration: During vehicle assembly, the OEM integrates a telematics device which connects to the engine control unit, GPS, and various sensors throughout the vehicle.

  • Data collection: These sensors continuously gather data on key metrics such as engine performance, fuel consumption, vehicle location, and speed.

  • Data transmission: The collected data is transmitted to cloud-based servers via cellular or satellite networks, enabling real-time updates that fleet managers can use for informed, data-driven decisions.

  • Data analytics: Once the data reaches the server, it is then analysed using fleet management software. This provides fleet managers with in-depth insights into vehicle condition, driver behaviour, and overall operational efficiency.

What are the advantages of OEM telematics?

1. Driver Safety

OEM telematics provides valuable insights into drivers’ behaviour, allowing fleet managers to determine risky driving habits such as harsh braking, over-acceleration, and speeding. By leveraging this data, managers can implement corrective actions like offering targeted driver training, increasing road safety alongside reducing the occurrence of incidents.

2. Fuel Management

OEM telematics allows fleet managers to monitor fuel consumption in real-time, identifying areas for improvement such as excessive engine idling. By handling these issues, managers can decrease fuel consumption, thereby saving on costs while also minimising environmental impact. Moreover, the GPS technology enables route optimisation, helping to select the most efficient routes, which further conserves fuel.

3. Cost Control

OEM telematics brings significant fleet cost control by eliminating the need for additional hardware installation. As the devices are already integrated into the fleet vehicles, they start collecting data as soon as they are dispatched. This minimises downtime due to setup, meaning there is no loss in productivity and consequent profitability.

4. Preventative Maintenance

OEM telematics enhances fleet maintenance planning by providing real-time data on vehicle performance and service interval requirements. That is, managers can schedule preventative maintenance and receive diagnostic alerts to address issues before they become major problems. And so, by using relevant data-driven insights, fleet managers can mitigate downtime, extend vehicle life cycles, and ensure that vehicles are running optimally.

5. Data Accuracy

With OEM telematics, managers gain access to highly accurate fleet data, given that the hardware is fully integrated into the vehicles. This results in rich insights including precise odometer readings, tyre pressure monitoring, and detailed fault codes. Relatedly, this level of detail also supports guaranteeing compliance with strict regulations.

OEM telematics integration from MICHELIN Connected Fleet

Telematics is becoming an increasingly integral part of the transport and logistics industry, with OEMs incorporating this technology into vehicles at an accelerating pace. This shift is exponentially streamlining fleet management, transforming it into a centralised, data-driven process.

The crux is that having the right strategy and tools is essential for fleet managers to scale their operations accordingly. As OEM telematics evolves with advancements in AI and machine learning, its adoption is inevitable, and staying ahead of this curve is vital for maintaining a competitive edge.

At MICHELIN Connected Fleet, we recognise the growing importance of OEM telematics for modern fleets. It’s for this reason why we’ve teamed up with leading partners to develop OEM fleet management solutions, which seamlessly combine the necessary hardware and software to help your fleet fully unlock the benefits of telematics.

If you’re interested in learning more about how our integrated OEM telematics solutions can future-proof your fleet, then be sure to make an enquiry into our services today.
MICHELIN Connected Fleet

Written by MICHELIN Connected Fleet

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