The Complete Guide to Telematics and ELD Systems

What is Telematics?

Telematics combines telecommunications and informatics to monitor vehicles remotely. In commercial transportation, telematics devices collect data from vehicle computers (via OBD-II or J1939 ports), GPS receivers, and onboard sensors to provide real-time visibility into vehicle location, engine diagnostics, driver behavior, and operational performance.

Modern telematics platforms have evolved from simple GPS tracking to comprehensive connected vehicle systems that integrate with cameras, ELDs, and fleet management software.

What is an ELD?

An Electronic Logging Device (ELD) is a specific type of telematics device that records Hours of Service (HOS) data for compliance with FMCSA regulations. Since December 2019, most commercial motor vehicles must use FMCSA-registered ELDs to record driving time, replacing paper logbooks.

While all ELDs include telematics capabilities, not all telematics devices are ELD-certified. Carriers subject to HOS rules must ensure their devices are on the FMCSA's registered ELD list.

Types of Telematics / ELD

Telematics and ELD solutions are designed for different operational environments:

Carrier / OTR ELD (Long-Haul & Regional Trucking)

Designed for over-the-road carriers running long-haul and regional routes. These solutions prioritize HOS compliance, fuel optimization across extended trips, and integration with dispatch and load planning systems. Features include advanced routing, fuel tax reporting (IFTA), and cross-border compliance for carriers operating in multiple jurisdictions.

Private Fleets ELD (Retailers, Distributors, Manufacturers)

Built for companies operating their own delivery and distribution fleets. While some may be exempt from ELD mandates, these organizations benefit from telematics for route optimization, delivery time tracking, asset utilization, and driver accountability. Integration with WMS and inventory systems is common for coordinating warehouse and transportation operations.

Field Services ELD (Utilities, Telecom, HVAC, Construction, Delivery)

Specialized for field service operations with high stop counts and variable schedules. These solutions emphasize job dispatching integration, customer appointment windows, technician productivity tracking, and proof of service. Features often include mobile workforce management, work order integration, and geofencing for job site arrival/departure tracking.

Core Telematics Capabilities

1. GPS Tracking

• Real-time location: Current position with configurable update frequency
• Historical playback: Review past trips and routes
• Geofencing: Alerts when vehicles enter or leave defined areas
• Breadcrumb trails: Visual route history on maps

2. ELD & HOS Compliance

• Automatic duty status: Driving time recorded from vehicle motion
• Remaining hours: Real-time visibility into available drive time
• RODS transfer: Electronic submission to inspectors
• Violation alerts: Warnings before HOS violations occur
• Unassigned driving: Track and assign vehicle movements

3. Vehicle Diagnostics

• Fault codes: Real-time engine diagnostic trouble codes
• Fuel level: Tank level monitoring and consumption tracking
• Odometer: Accurate mileage for maintenance scheduling
• Engine hours: Runtime tracking for equipment

4. Driver Behavior

• Speeding detection: Alerts for speed limit violations
• Harsh events: Hard braking, rapid acceleration, cornering
• Idling: Excessive idle time monitoring
• Scorecards: Driver safety rankings and trends

Advanced Telematics Features

Video Telematics

Integrated dashcams capture road-facing and driver-facing video triggered by harsh events. AI-powered systems detect distracted driving, drowsiness, and unsafe behaviors in real-time.

ADAS Integration

Advanced Driver Assistance Systems provide forward collision warnings, lane departure alerts, and following distance monitoring through the telematics platform.

Fuel Card Integration

Connect fuel purchases to vehicle data to detect fraud, analyze fuel efficiency, and automate IFTA reporting.

Maintenance Alerts

Predictive maintenance using engine data to anticipate failures before breakdowns. Automated PM scheduling based on miles, hours, or time.

ELD Compliance Requirements

Who Must Use ELDs

• Drivers required to keep Records of Duty Status (RODS)
• Vehicles with gross weight over 10,000 lbs
• Interstate commercial motor vehicle operations

Exemptions

• Drivers operating under short-haul exemption (150/100 air-mile radius)
• Driveaway-towaway operations
• Vehicles manufactured before 2000

Technical Requirements

• Device must be on FMCSA's registered ELD list
• Must automatically record driving time when vehicle is in motion
• Cannot be configured to allow HOS violations
• Must support electronic and printable data transfer

Telematics Selection Criteria

1. ELD Certification

For HOS-regulated carriers, verify the device appears on FMCSA's registered ELD list. Check the device's roadside inspection track record.

2. Fleet Size & Complexity

Enterprise fleets need multi-site management, advanced analytics, and robust integrations. Smaller operations need simplicity and affordability.

3. Hardware Options

Consider plug-and-play devices vs. hardwired installations, tablet displays vs. dedicated units, and BYOD vs. provided hardware.

4. Integration Ecosystem

Evaluate connections to TMS, accounting, dispatch, fuel cards, and load boards. API capabilities for custom integrations.

5. Total Cost

Factor hardware purchase or lease, monthly service fees, installation costs, and contract terms. Multi-year contracts may offer savings.

Telematics ROI

Organizations typically achieve returns through:

• Fuel savings: 10-15% reduction from idling elimination and route optimization
• Insurance reduction: 5-15% premium decrease with safety monitoring
• Compliance: Avoided violations and out-of-service orders
• Maintenance savings: 10-20% reduction through preventive programs
• Accident reduction: 20-40% fewer incidents with behavior coaching

Getting Started

Explore telematics and ELD solutions in our Telematics comparison tool to find platforms that match your compliance and fleet management needs.