Many individuals within the transportation industry are familiar with the term telematics. This term is typically synonymous with GPS tracking. It also refers to the real time collection of vehicle data in general. The frequency and type of data collected is dependent upon the application. This can vary across systems, but it typically includes diagnostics, GPS and other unique inputs.
Asset Management, on the other hand, is a more generic term that can describe several different functions. Some people may immediately think of “asset management” as having to do with finances (stocks, funds and bonds). In the transportation history, however, asset management is synonymous with maintenance. And while maintenance is a component of Asset Management, it does not show the full, broad definition of the term.
The term Asset Management refers to the entire lifespan management of physical assets of an organization. The goal is to maximize value, including: purchasing, operations, replacement of equipment and maintenance.
By managing assets across the enterprise organizations can:
- improve performance
- increase utilization
- reduce capital costs and
- decrease asset-related operating costs,
- improve the return on assets (ROA)
- extend asset life by managing assets across the enterprise
Asset Management relies on three primary functions:
- Data and Condition Assessment Models
- Data input/collection
- Analytics and Reporting.
Data collection requires the most investment in terms of labor and cost, but it’s also the most important of the three. Many asset management systems fail due to poor or inconsistent data collection.
To help with these issues, today’s vehicle asset management solutions can be automated to great extent with real-time telematics. Diagnostic Trouble Codes (DTC) and GPS can be utilized to generate hours driven, miles driven and determine vehicle issues before they occur. To do so, however, the data must be collected, and vendors must know exactly what to do with it.
If you’re collecting data but not doing anything with it, why are you spending the money? You need a program that aligns both telematics and valuable data. This provides it in a way that you can utilize the data efficiently. Extend your solution to leverage telematics data to automate an asset management system and drive real value to your enterprise.