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  December 3rd, 2020 | Written by

The Role of Telematics Solutions in Global Supply Chain Management

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  • One of the branches that excel at improving the organization and operation sectors of logistics is telematics.
  • To be successful among strong competitors, it is crucial to use modern tools and approaches.

Today, the logistics industry is expanding at a fast pace. As global trends and strategies grow, so does the tendency to conquer new markets and use innovative technology. However, it is also vital to understand that, with this rapid expansion, the complexity of processes in the logistics industry reaches new heights. Consequently, more advanced solutions are needed. One of the branches that excel at improving the organization and operation sectors of logistics is telematics. The role of telematics solutions in global supply chain management lies in simplifying all processes and providing answers for the growing industry’s complex demands.

Telematics tip the scale in favor of logistics companies in the current market

One of the obstacles to managing vehicle usage in logistics and the supply chain was that there were no options to track information like vehicle location and activity, engine diagnostics, and driver behavior. With the development of telematics technology, this problem has been solved. Telematics allows you to gather all this wide range of information on a single platform and visualize the entire picture of one vehicle or an entire fleet. Consequently, fleet operators have a full grasp of the entire operation, and they will be able to manage resources better.

With the global pandemic still on the loose, logistics companies worldwide are fighting for dominion and re-shaping the supply chain in the process. To be successful among strong competitors, it is crucial to use modern tools and approaches. The correct use of telematics solutions will tip the scale in favor of those who use it. Let’s learn more about it to see how.

Improving time management becomes a crucial factor

One of the best features of telematics solutions in global supply chain management is optimizing processes, substantially reducing the time needed to complete various logistics activities. Consequently, flexibility within the supply chain increases, making it possible to minimize delays. Since time is everything in this industry, it becomes obvious why companies invest money into getting the latest telematics equipment.

How telematics affect the sustainability factors in the global supply chain?

With the increased use of vehicles for transport, it is getting harder to control the damage caused by gasoline fumes. The additional benefit of telematics is that it reduces the negative impact of transportation processes on the environment. The feature that allows you to optimize delivery routes will, in the long run, substantially reduce the use of gasoline, resulting in less pollution and less damage to the environment. With such wide use, it touches all the critical areas of the logistics industry and strengthens the global supply chain management.

IoT in conjunction with telematics

The Internet of Things is connecting the entire world in ways that were unimaginable just 10 to 20 years ago. A question presents itself; what will the next 20 years bring to the table?

IoT is a powerful tool that communicates with other solutions like telematics and helps them reach the peak of their performance capabilities.

The way in which this “partnership” improves global supply chain management can also be seen in its monitoring and tracking features. It is possible to precisely track vehicles and monitor a wide area of business networks. The warehousing and logistics departments have a transparent view of receiving and delivering operations, consequently eliminating blind spots in all processes.

Improving business efficiency while lowering operating costs

Improving business efficiency and reducing operating costs is greatly improved with the use of Fleet Telematics and other intelligent tools.

The idea is to transform big chunks of data into usable information. Whether you want to guide the forklift as it unloads packages in and out of the warehouse or use the system to keep track of goods delivery or real-time shipping schedules, telematics delivers at all times.


The safety of your employees is your primary concern

Speaking of how telematics influences all areas of the supply chain, we must touch on employee safety as well. We mentioned earlier how telematics measures vehicle usage and driver behavior and sends that data to the operators. By monitoring the speed of the vehicle, hard brakes, swerves, and a wide range of road conditions, it allows a full analysis of the driving.

With the addition of a dashcam, you can get a full report of the road and the driver backed up with images. Knowing this information will help prevent accidents and protect both the driver and the other vehicles in the traffic, and, in turn, lead to saving money.

Customs reports and dashboards

Working in logistics means having contact with customs. Sending and receiving goods every day requires a lot of paperwork, as well as special rules and regulations depending on the nature of the goods.

Telematics solutions in global supply chain management offer improved customizable reports and dashboards for easier tracking and full insight into the nitty-gritty of the customs processes.

An overview of the global supply chain management features

With telematics solutions behind the wheels, global supply chain management gets access to unique features, like vehicle administration, ad-hoc data analysis, NRU and RMA program management, safety program, and much more.

It is a unified platform that combines planning and execution, creating synergy in business operations.

Protecting the future of the global supply chain

The consequences of COVID-19 on the logistics industry are still not showing their real face. However, that does not mean a new threat cannot appear at any time.

Complete transparency of operations increases overall security in all areas of logistics. This allows for the entire industry to prepare for future disruptions of the supply chain network.

The idea of implementing advanced solutions is not only to manage processes but also to protect the industry from any possible disasters that could seriously hinder its operations and affect customer satisfaction.

Going beyond telematics – the future of the global supply chain industry

To quickly jump back, no one knows with certainty what will the next 20 years bring with telematics’ development. However, there are some ideas and projects worth investing in. We are slowly moving towards the future of autonomous vehicles that do the “driving” while the driver prepares delivery documentation, works on customer communication, invoicing, and much more. The vehicle is connected to the environment at all times, using sensors that send information about road conditions, communicate with traffic systems, and all that without any human interaction.

The global supply chain management will flourish in these conditions, allowing complete automation of all systems through telematics. It sounds like a futuristic sci-fi movie, but countries like France and Germany are already implementing some starting forms of these management systems.

It is safe to say that the future of telematics opens many doors. It is yet to be seen how soon this change will happen, but progress is imminent.


Austin Dillon is a freelance writer interested in all topics surrounding international trade and shipping. With 3 years of experience writing about the global supply chain, he has gained valuable insights into the field. When he is not working, Austin loves watching old Hollywood movies.