OEM or aftermarket telematics — which one is right for me? Can these fleet management systems solve all of my pain points? Am I even getting access to the right data? What about the prices?

With progressing times, the needs and demands of the fleet industry have vastly changed. Today, fleet owners and managers focus more on operating lean and sustainable. One of the key players in ensuring smooth operations is ‘telematics’. For the unknown, telematics simply is using telecommunication devices to transmit information remotely or wirelessly. Think of it as being able to access all the data related to your equipment (safety checklist completion, training certification management, sharp turning, unauthorized access, and whatnot) at the comfort of your desk, on your screen.

Now that one has a basic understanding of telematics, the important question is which telematics provider to choose from? Businesses considering the acquisition of telematics devices for fleet management have two sources — OEM (Original Equipment Manufacturer) or AM (After Market) telematics aka third-party providers.

Read on to find out the differences and identify which one better fits the bill for your business needs!

 

OEM (Original Equipment Manufacturer) Telematics

Equipment manufacturers have the advantage of being able to integrate their systems directly into the vehicle. This means that fleet managers or supply chain executives don’t have to acquire additional hardware to integrate telematics systems with the vehicle. This process can make it easy for the end-user to manage their assets through the manufacturers’ technology. However, this also proposes some limitations as explained below.

Another huge plus point for OEMs is the opportunity to enjoy more face time with their customers. Due to that first in-person contact, many users might be persuaded to not look any further in the market and accept the OEM’s deal as is.  

Potential Drawbacks

One of the biggest setbacks with an OEM telematics system is that it can only be used on the vehicle or equipment for which the system is originally designed. As a customer, you cannot take the telematics system and use it on any other brand of the fleet. This can be problematic when leveraging telematics information for a mixed fleet consisting of many different manufacturers’ equipment. If a customer can only gain insight on some assets and not on others, how can they receive the maximum value from telematics systems installed on their fleet?

Telematics systems were created to be an excellent tool for managers to assess the usage of their vehicles and identify when the fleet needs to be right-sized. With OEM systems, there will be no incentive to showcase this data and lead managers to downsize their fleet, due to the conflict of decreasing purchasing of assets from the OEMs. Then, how can the customer rest assured that they have the right data at their disposal? Tricky, right!

Moreover, OEM systems may not include certain features that an aftermarket provider’s system has. For instance, some systems provided by an OEM are not able to connect to the Internet, read data from multiple assets, provide continuous readings, and/or send alert notifications to the customer.

Aftermarket Telematics

An aftermarket telematics system offered by a third-party provider has certain advantages when it comes to customization, flexibility, data transparency, and cost optimization.

1. Brand agnostic

Unlike OEMs, with aftermarket telematics there is no favoritism towards any brand, make, or model. The system looks and feels identical across brands, pulling desired data even from your mixed fleet, thus, ensuring the best user experience. Their solutions are adaptable to any equipment and offer customization to make the system more specific to a customer’s requirements. So, when you plan to shift from one brand of equipment to another, aftermarket telematics is there to ensure smooth transitioning.

2. Seamless integration

With a third-party provider’s telematics system, businesses don’t have to attempt to develop their own interfaces that integrate into a vehicle or hire outside resources to design and manufacture one for you. The aftermarket product already has the integration capability promoting “one version of the truth” within organizations that adopt them. The ability to integrate all systems together eliminates redundancies or overlap in data while streamlining business processes.

3. Pilot testing

Another benefit to aftermarket telematics is the ability to segment a migration before installing telematics on an entire fleet. Some providers allow testing a site or department before a full-blown implementation. The ability for customers to visualize how telematics solutions can impact their business is an essential piece to utilizing all of the features available to genuinely gain their ROI and perceive improvements quickly.

4. Who owns your data?

A major concern with OEM telematics is compromised data transparency. OEMs might hide critical data from their customers to cash on their profits –- with aftermarket telematics solutions, this is taken care of. Here, the customers own their data and are given proper training to use it in the best possible way. The customer has the utmost power when it comes to decision making and the correct use of data.

The choice is yours — don’t let your data be held hostage!

5. Fleet rightsizing

With the right data in hand, the user has the option to right size their fleet. For example, if a telematics system tells you that one-thirds of your fleet is idle 85% of the time at a particular site, this information then can be used to make an informed decision of either downsizing or migrating those pieces of equipment to another site.

6. Lower TCO (Total Cost of Ownership)

Aftermarket telematics helps lower your total cost of ownership, thus, maximizing ROI. A reliable telematics solution will help the end-user save thousands of dollars in maintenance, compliance, and other miscellaneous costs.

P.S. Think of a time when a huge maintenance cost could be curtailed only with an on-time preventive maintenance reminder and don’t even get us thinking of those heavy OSHA penalties!

7. Transparent business model

Aftermarket telematics providers have no vested interests in pushing their solutions apart from one that they must work for the customers and boost the productivity of their operations. They are not tied up to any manufacturer and thus provide flexibility and resource optimization. Where does one even find a deal like that?  

Potential Drawbacks

Fleet dealers and fleet managers are always looking forward to solutions that will create better visibility for their assets, a more appealing opportunity for their customers, and implementing systems that save costs. The setbacks when analyzing an aftermarket telematics solution can only be perceived depending on a business’ short- and long-term operational goals. If the customer is only looking for some basic monitoring features such as location tracking and/or GPS navigation in a handful of uniform fleets then OEM might be their pick, but for more advanced and customized fleet management, aftermarket telematics is the way forward — durable and sustainable.

 

Advancing with Technology

In a world of quickly advancing technologies, aftermarket telematics continue to be an innovative resource, providing a level of sophistication that a fleet manager or fleet dealer can rely on. Some excellent examples of emerging technologies within telematics solutions today are ⁠— real time reporting (that can be automated and distributed on scheduled bases), alert notifications (sent via SMS or to email while being recorded in a report or other software system), sensors tracking human alerts to warn accident or injury, and geo-fencing for identifying assets that travel beyond an assigned periphery.

Understanding the advancement of telematics allows businesses to visualize a future of cost saving, improved productivity, access to reliable data, thus, serving as an all-in-one-solution for smoother operations while extending the life of your fleet.

 

About Access

Access Control Group is an example of an aftermarket telematics provider offering a level of sophistication when it comes to telematics for any industry. Companies like us continue to set the stage for advancing technologies while simplifying the deployment process.

Our customers savings are our real success. Our solutions help end-users realize the value of investing in a technology that provides immediate insight into their assets along with a measurable return on investment (ROI) for their business operations.

For more information on Access Control Group and its products, contact an Access representative at (908) 789-8700.