Volvo Group is developing a proprietary cryptocurrency aimed at streamlining transactions with its suppliers, according to Ivan Branco, the company's head of information management, AI, and analytics for logistics in Belgium. The initiative is part of a broader exploration of blockchain technology to address supply chain inefficiencies.
Blockchain for Business Needs
Branco emphasized that Volvo's approach to blockchain is driven by practical business requirements rather than technological novelty. "We first focus on the business value," he said, noting that the company seeks to solve specific operational problems. He identified a "false stigma" linking blockchain solely to cryptocurrency speculation as a major barrier to adoption. Volvo aims to shift from isolated departmental systems to a collaborative framework where blockchain enhances security and stability in managing complex information.
The Proprietary Cryptocurrency Experiment
Volvo has conducted tests with transport suppliers to create a closed-loop system using a proprietary digital currency. "We've done explorations... to see if we could create an enclosed environment using blockchain for the transactions between material supplier, transport supplier, and ourselves," Branco explained. The goal was to simplify exchanges by using a single cryptocurrency as a facilitator, while the ledger recorded all transportation order data. Branco believes this approach could reduce complexity in information exchange across the supply chain.