The introduction of telematics has had a  remarkable impact on the transportation and logistics industry, it has enabled the logistics industry to automate the collection and attain required documentation for compliance with government regulations; control fuel and maintenance costs; and gain visibility into the driving/ behavior of individuals.

Telematics has brought a change in the supply chain management of logistics industry. The two important elements of supply chain costs are inventories and transportation. While RFID upgrades the inventory management process, telematics improves the transportation process. By employing both technologies, logistics industry’s overall supply chain efficiency can be upgraded. Main trend in supply chains is the requirement of regular real- time control of flow of goods. In the said scenario, telematics bring benefits to supply-chain in terms of enhanced visibility and better flexibility, curbing the risks of external hindrances.

Better commercial fleet management is enabled with telematics as it offers two way wireless communications between vehicle/ drivers and logistics company locations. With the help of telematics, GPS tracking in particular, drivers on the road can be deployed and diverted at short notice to take on new assignments, which results in benefits including:

• Flexibility in route planning.
• Increased vehicle usage rate.
• Optimum utilization of capacity.
• Reduced fuel consumption.

Telematics plays a key role when it comes to communication in the logistics industry; it ensures better delivery of instructions. Along with the voice based messages, text- and graphic-based messages can also be delivered and shown properly on the truck dashboard, which results in benefits like:

• Improved data accuracy and reduced confusion.
• Better shipment and location information.
• Clearer instructions for cargo pick-up and delivery.

As a conclusion, it can be said that, in current times when transportation companies trying to outperform their competitors, integration of telematics in the business cannot be ignored for long. The logistics companies and the fleet managers are showing keen interest in incorporating telematics solutions into their businesses as it brings benefits including not only the immediate savings through monitoring but also the facility to gather and record all data related to the vehicle.