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What is a Vehicle Monitoring System?

A Vehicle Monitoring System (VMS) is so much more than just tracking your asset. It’s a unique mix of software, hardware, and connectivity that gives fleet managers maximum visibility. By bringing together these elements, a VMS can help your business become a profitable, safer, and smoother-running operation.

According to Business Wire, the global market for AI-powered fleet management software was estimated at USD 4.3 billion in 2023, with a projected reach of USD 14.4 billion by 2030, growing at a CAGR of 18.7% from 2023 to 2030. With the global market expected to more than triple by 2030, businesses that don’t adopt smart monitoring solutions risk falling behind.

Without the right tools at hand, your business could face serious vulnerabilities. Through this guide, we’ll explore the practical outcomes of adopting a VMS and how Cartrack provides comprehensive vehicle monitoring solutions suited to any fleet.

In this article, you will:

  • A VMS gives fleet managers total visibility and helps make operations safer and more efficient
  • Features like driver behaviour analysis, real-time tracking, and vehicle diagnostics improve safety and performance
  • A good VMS reduces accidents, saves fuel, prevents theft, and supports better business decisions
  • Cartrack provides reliable, secure, and AI-powered VMS solutions with real-time tracking and Stolen Vehicle Recovery

How do vehicle monitoring systems work?

Vehicle monitoring systems work by combining smart, connected tools to bring simplicity and ease to fleet managers. Hardware, software, and connectivity operate collectively to enhance fleet management strategies. 

VMS is also often referred to as ‘black box’ technology because it works like a black box in an aeroplane. It’s constantly collecting all the data in your vehicle, and this data is used and interpreted at a later stage.

The data can often be used to understand what happened in an accident, what safety checks are required, or to simply improve fleet operations.

When these tools work well together, you can get the key information you need quickly, helping you to make smarter decisions for your business. Factors like driver and trip reports, vehicle health checks, and overall performance insights can be really useful.

These are the key components of VMS:

  • Hardware: This refers to what’s installed in your vehicles. It’s at the core of your VMS. Hardware typically includes GPS devices and sensors that gather insights on factors like fuel consumption, driver behaviour, and location.
  • Software: These are the insights that are gathered and fed to your fleet management platform. Software is what allows fleet managers to keep tabs on vehicle performance, generate reports, and assess trends.
  • Connectivity: This is what keeps your VMS running smoothly. It uses cellular networks, satellite links, and IoT connections so you can get real-time location tracking and immediate alerts when you need them.

What are the core vehicle monitoring system features that drive fleet performance?

At the core of vehicle monitoring systems, features that drive fleet performance include vehicle diagnostics, fleet management integration, and driver behaviour analysis. Each of these capabilities gives fleet managers greater control and visibility over fleets.

These are the core features:

Driver behaviour analysis

Modern VMS examines drivers and their driving patterns in real time—particularly unsafe ones. These include aggressive driving, quick turns, and other dangerous actions. Generating reports on drivers allows fleet managers to give feedback and provide coaching or driver training.

This reduces the likelihood of costly accident risks and promotes safe driving habits.

Real-time location tracking

VMS solutions use satellite and cellular connections to ensure that your assets are being tracked at all times. Always knowing where your assets are is the key to prompt deliveries and swift responses in emergencies. 

Additionally, location tracking is the foundation of route optimisation, allowing fleet managers to explore the best routes, minimise fuel consumption, and manage unexpected delivery changes.

Vehicle diagnostics

Staying on top of vehicle health is how you minimise downtime. VMS assists with factors like preventative maintenance and fuel optimisation, ultimately reducing fuel waste and expensive, unexpected breakdowns.

Geofencing and other alerts

VMS allows for geofencing. This is when virtual zones are set up in certain areas, and fleet managers are alerted when a vehicle enters and exits those zones. Geofencing is important for a number of reasons, namely enhanced security and increased productivity.

Together with notifications for idling or improper vehicle usage, these notifications add an extra layer of security and total operational control.

Cartrack vehicle monitoring systems overseeing logistics center with loading bay and trucks.

Integration with fleet management tools

A VMS only works best when it’s smoothly integrated with a fleet management platform. This means that all information and systems are not only streamlined but also AI-powered, reducing the potential for human error.

Scheduling, reports, and other operational workflows are made far easier to manage.

Mobile access and storage

A VMS should allow fleet managers to quickly and easily access insights when necessary, especially from connected mobile apps. More so, cloud-based storage is the way to go, as it keeps your data secure and easy to access from any device.

The practical outcomes of using a vehicle monitoring system

Using a vehicle monitoring system delivers tangible business results and return on investment. A VMS is the most vital component to optimising the performance of your fleet while also ensuring safety, asset utilisation, and driver accountability. Here are some of the best outcomes:

Reduce accidents and improve driver safety

Using VMS as a foundation for a positive driving culture means fewer accidents and greater driver accountability. Fleet managers have the opportunity to not only build better policies but also generate reward systems for drivers who implement safe driving practices.

Optimise routes and fuel usage

Fuel is one of the biggest fleet costs. By using a VMS to optimise routes, you can cut fuel expenses and reduce travel time. At the same time, you’re supporting sustainable fleet management by lowering your fleet’s carbon emissions.

Prevent theft and improve recovery chances

With core features like live GPS tracking and instant alerts, a VMS helps fleet managers stay on top of emergencies. Combined with a Cartrack service like Stolen Vehicle Recovery (SVR), it greatly improves your chances of getting a stolen vehicle back quickly.

Provide data for compliance, driver training, and operational decisions

Like the black box in a plane, the VMS collects all kinds of data from the vehicle. This data can be used to ensure compliance, enforce driver training if necessary, and back up operational decisions. With this information at hand, any operational feedback or changes are better informed.

Tailored solutions based on fleet size, type, and industry

You can use the features of a VMS to fit your business and fleet size. Customise the hardware add-ons or choose the software services you want to populate your fleet management platform with, depending on your business needs. A good VMS system can accommodate various business scales while offering the same positive outcomes.

Cartrack vehicle monitoring systems on smartphone tracking red truck on dirt road.

How to choose the right vehicle monitoring system

Choosing the right vehicle monitoring system means looking for a solution that includes key factors such as scalability and reliability. You want to be sure that the VMS you choose can fully support you and your business goals while still allowing for growth, should your business expand.

These are the important factors to consider:

  • Reliability: The VMS you choose should be sturdy and reliable while working seamlessly. A system that helps you avoid downtime is key. Go for a system that provides you with all the detailed insights you need to transform the way your business runs.
  • Integration: Choose a VMS system that pairs smoothly with a single fleet management platform, because this makes fleet management much easier. Avoid a VMS system that requires you to integrate with more than one platform. Cross-platform confusion can slow your workflow and make simple tasks take far longer.
  • Data security: Your business insights are yours to monitor, not anyone else’s. Ensure that your VMS solution is one that’s based in complete safety and security, so that you have the power to control who sees what. A safe VMS is an encrypted one, with additional advanced security measures in place.
  • Support: A VMS should always be provided by a company that has your best business interests at heart. Look for a provider that’s willing to offer onboarding and ongoing support throughout, along with quick emergency responses.
  • Scalability: Ensure that your VMS is able to adapt to any fleet size. A reliable VMS can suit your business needs—whether small or large-scale—without requiring a whole new system.

These are some common mistakes to avoid during the selection process:

  • Choosing based on price alone: An initial low price might look appealing, but it might not meet your functionality needs. Look beyond the cheapest option and instead consider what will generate the best ROI.
  • Ignoring integration or mobile access: Again, cross-platform integration and lack of mobile access can slow you down. A VMS shouldn’t be a standalone tool; it should work comfortably with other platforms for the best results.
  • Selecting limited-function systems: Much like choosing based on price alone, choosing a VMS with limited functions may only solve immediate problems. Consider a VMS that keeps the future of your business in mind.

How Cartrack delivers the best in vehicle monitoring systems

Now that we’ve covered how to choose the right VMS, one can safely say that Cartrack delivers the best in vehicle monitoring systems by meeting every key requirement.

Cartrack is a leading company in the VMS field, providing supportive, secure, and innovative solutions for every kind of business.

Here’s how Cartrack truly stands out:

  • Real-time tracking and analytics: Through Fleetweb, Cartrack provides users with immediate analytics and detailed data. You can get immediate access to the information you need and guarantee a fast response from the control room team in case of an emergency.
  • AI-powered driver behaviour analysis: Cartrack can help you create a safe driving culture and ensure that your drivers remain protected. With our video AI capabilities, you can monitor unsafe driving behaviours, generate trip reports, and use the feedback to coach drivers.
  • Secure storage: Cartrack has implemented advanced security measures to ensure your information remains safe and secure. You can rest assured knowing that your data is stored behind levels of encryption that meet universal industry standards.
  • SVR support: Cartrack gives you an extra level of security by offering Stolen Vehicle Recovery (SVR) on our platform. Should you be faced with theft, you can rest assured that Cartrack will act as quickly as possible to recover your asset.
  • Reliability and flexibility: Cartrack is invested in your long-term outcomes; trust us to provide the best in a customer-first approach and committed support.

At Cartrack, we go far beyond simply delivering VMS solutions—we look to empower businesses every step of the way.

Final thoughts

A VMS isn’t just useful, it’s essential! With the ability to deliver comprehensive insights and produce tangible payoffs, it’s undoubtedly the key to the most optimised version of your fleet.

You can make sure that your fleet’s needs are satisfied with Cartrack’s VMS solutions. Cartrack’s options are equipped with AI-powered insights, reliable support, real-time tracking, and robust hardware, cementing us as a top choice for businesses across 23 countries.

Take control of your fleet operationsBook a demo today and see how Cartrack’s vehicle monitoring solutions can transform the way your fleet operates.

FAQs

Q: How is VMS different from GPS tracking?

A: GPS tracking is solely about tracking, whereas a VMS takes GPS tracking and combines it with numerous other elements to provide comprehensive feedback. The system takes factors like alerts, vehicle health monitoring, and video telematics to give you a well-rounded overview of your asset and its driving patterns.

Q: Is VMS data secure?

A: Whether your data is completely secure or not ultimately depends on the provider. It’s impossible to guarantee the security of every VMS solution, but with Cartrack, you can ensure the safe and secure storage of your data. Cartrack employs encryption, monitoring, and access management, so you’re in control of your private data.

Q: Can Cartrack integrate VMS with other systems?

A: Yes, Cartrack can integrate VMS with other systems. In fact, Cartrack’s platform has been made with integrations and smooth application interactions in mind. Cartrack’s Fleetweb is a good example of this, but third-party systems connect just as seamlessly. Smooth integration ensures that your workflow is operating at peak level.

Q: How quickly can the installation and activation of a vehicle monitoring system be completed with Cartrack?

A: Installation and activation can take one to a few hours, depending on the size of your fleet and the complexity of your chosen hardware add-ons. This means that you could start seeing insights and data feedback on the same day as installation.