Why Vehicle Telematics Should Be on Your Supply Chain Roadmap

In today's fast-moving world and competitive business environment, supply chain management is constantly evolving to offer better solutions and advanced technologies. One of these effective solutions is vehicle telematics. This advanced solution is a boon in the world of transportation management when it comes to real-time updates, cost savings, and sustainability. With the integration of telematics into supply chain operations, businesses can increase the visibility of vehicles, optimize routes, and save costs.   

What is Vehicle Telematics? 

Vehicle telematics is an integrated system that combines telecommunications, GPS systems, and vehicle data to monitor vehicles and provide real-time updates, including speed, fuel usage, location, and more. It helps improve vehicle maintainability and driver safety. Drivers can access live data, including weather reports and road conditions. 

What is the Vehicle Telematics System? What are the major requirements for this system? 

A vehicle telematics system uses tracking devices installed in vehicles to collect and send data over wireless networks, with the help of the vehicle’s onboard diagnostic system (OBDII). SIM card and modem in the device enable communication. Telecom companies transmit this data, making it accessible to drivers and fleet managers via computers or mobile devices. This smart system allows users to easily track important vehicle details like location, fuel usage, and average fuel efficiency.  

By combining telecommunication, GPS, and vehicle data, all the relevant data is recorded by a black box installed in the vehicle, giving real-time insights for better maintenance and management. This data is communicated through the SIM card installed in the vehicle which transmits the data to telecom companies.

Supply Chain Efficiency with Vehicle Telematics 

Telematics combines GPS tracking, vehicle diagnostics, fuel monitoring, and driver behavior analysis, and enhances supply chain transparency. It offers key benefits, including improved visibility, cost savings, and enhanced sustainability. 

Real-time visibility

One of the key solutions of telematics is real-time visibility of the vehicle. It uses GPS services to track the location and speed of the vehicle. Fleet managers can track progress on delivery schedules and can report unexpected delays like traffic or detours. This feature of telematics allows businesses to: 

• Optimize routes: With real-time updates, fleet managers can optimize the route in advance, leading to fewer detours for the vehicles, and ensuring faster and more reliable deliveries, reducing delays and missed deadlines. 
• Always updated: Real-time tracking keeps both customers and the team in the loop, reducing any uncertainty about where shipments are and ensuring smoother communication all around. 
• Boost Performance: By keeping track of vehicle movements, managers can get a clear picture of vehicle performance. They can spot areas where operations can be improved, tweak routes, and make sure everything flows smoothly, thereby increasing the performance of the vehicle. 

Cost Savings

Telematics is an effective solution to cut down on unnecessary costs and make better decisions when managing your fleet. The fleet managers can gain detailed insights into a vehicle's performance by understanding its behavior patterns. They can easily determine when maintenance is required and monitor fuel consumption. This allows them to make appropriate decisions that can reduce overall costs. This feature allows businesses to:

• Smart Fuel Usage: Telematics systems closely monitor fuel usage by the vehicle. This helps fleet managers recognize patterns in routes or driving habits that waste fuel. With this data, they can implement simple changes that save both fuel and money.
• Prevent Problems Before They Happen:  Instead of waiting for a vehicle to break down, telematics sends you early alerts when issues are detected. It tells you when a truck needs maintenance, so you can fix small issues before they turn into expensive repairs. That also means your vehicles stay on the road longer.
• Optimizing Vehicle Allocation: Telematics provides detailed data on each vehicle’s performance. This helps you assign the right truck for each job, ensuring that the right vehicle is assigned to the job, avoiding the use of larger, fuel-heavy vehicles when a smaller one will suffice. Less waste, more savings.

Sustainability

These days, more businesses are embracing the sustainable approach and taking their environmental responsibilities seriously. Telematics plays a big part in helping them do this. By providing real-time data on things like vehicle performance, fuel consumption, and driving habits, telematics helps companies make smarter, greener decisions.

Some telematics systems even generate reports on a vehicle's carbon emissions. These reports are incredibly helpful for spotting issues early on, allowing businesses to address them before they become bigger problems. By addressing these issues promptly, companies can significantly reduce their vehicles' carbon emissions and contribute to a more sustainable operation. 

Integration of a vehicle telematics system with SAP Transportation Management

Vehicle telematics provides real-time data on vehicle performance, but its full potential is unlocked when integrated with systems like SAP Transportation Management (SAP TM). By combining telematics data with SAP TM’s analytics and optimization tools, businesses can improve the efficiency and visibility of their vehicles, drivers, and deliveries. SAP and its partners have provided innovative and integrated solutions to combine SAP with telematics. These solutions are built on the SAP Business Technology Platform (BTP), which combines data analytics, app development, and AI, ensuring seamless integration.

Archlynk and Fourkites Accelerator

• Fourkites integrates directly with SAP TM or with SAP Business Network for Logistics to provide live updates on shipments, including the location, status, and estimated ETAs. This integration helps in improving end-to-end visibility and decision-making.
• FourKites’ Intelligent Control Tower™ combines the world’s largest real-time supply chain network, predictive intelligence, and AI-powered Digital Workers to prevent disruptions before they happen and automate routine decisions.
• With FourKites' Shipment Twin, one of the Digital Twins technology, SAP users get a digital replica of each shipment. This allows them to track shipments closely, spot potential issues early, and keep things on track.

Archlynk and P44 Accelerator

• Project44 integrates with telematics providers (e.g., Samsara, Geotab, Omnitracs) to collect real-time GPS and ELD (Electronic Logging Device) data from trucks and trailers. It then aggregates this data into a single platform, making it accessible in SAP TM or other logistics systems.
• Archlynk enhances shipment visibility by integrating SAP TM with the P44 Accelerator, allowing for better control across various transportation modes.
• By leveraging P44 Accelerator, Archlynk provides a fully configurable solution for tracking FTL (Full Truckload), LTL (Less than Truckload), and Ocean Freight. It also offers seamless integration with real-time updates through an API connection.

ArchLynk and Flairz Health Accelerator

• Flairz Health Accelerator integrates with wearable devices and sensors to monitor worker fatigue and health in real-time, sending personalized alerts to improve well-being.
• ArchLynk uses this solution to enhance safety and productivity by addressing stress and fatigue, ultimately reducing the risk of accidents.
• By integrating Flairz Health Accelerator, ArchLynk offers predictive analytics to optimize workforce health and inform operational decisions.
• It also promotes sustainable transportation by encouraging efficient driving practices and reducing carbon emissions, contributing to greener logistics operations.

Conclusion

Vehicle telematics is a game-changer for modern logistics, driving real-time visibility, operational efficiency, cost savings, and sustainability. But its true value is unlocked when integrated into a connected digital supply chain landscape powered by SAP Transportation Management.

At ArchLynk, we bring a value-first strategy and innovation mindset, helping businesses break down silos and make high-impact investments that drive measurable transformation. With deep SAP expertise and over a decade of proven delivery, we ensure seamless execution across even the most complex logistics landscapes. And as your end-to-end supply chain partner, we provide fully integrated solutions that connect planning, execution, compliance, and visibility—empowering you to make smarter, faster decisions across the value chain.

👉 Ready to optimize logistics with SAP TM and telematics?
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