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A fleet telematics system is a method for managing vehicle fleets by combining in-vehicle hardware with a centralized software platform. This integration facilitates the real-time collection and analysis of data related to a vehicle's location, its mechanical health, and the performance of its driver. While it uses vehicle tracking for foundational automatic vehicle location, a comprehensive telematics system goes further by tapping into a vehicle's onboard diagnostic systems. It is a component of fleet digitalization, transforming raw data into insights for improving efficiency, safety, and lowering the total cost of ownership (TCO).
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