ALTERNATIVE FINANCE TECHNIQUE IN THE LOGISTICS SECTOR: BLOCKCHAIN

Purpose- As a new generation financial concept “Blockchain and Cryptocurrencies”, which have rapidly entered into the world recent years, have intense effects on our social norms, financial system and business models in the industry. In this research, it is aimed to examine the effects and contributions of innovative financial technologies that have developed with the intense digital transformation, which started with the concept of Logistic 4.0, through the sector. Actually innovative solutions to be developed by the fintech companies are expected to emerge in the logistics sector in the coming years. As we are experiencing the financial opportunities offered by fintech companies in the world, the logistics industry can also take new financial steps forward in our country with the help of great technological opportunities. However, logistics service providers traditionally focus on the delivery of goods and can quickly adapt to the realization of the opportunities so that Fintech’s can present new techniques to their business processes. Both fintech and logistics companies can provide significant added values to the industry by bringing their forces together. Methodology- In this study, I searched the current financing practices in the industry through a comprehensive literature review of the blockchain as an alternative way in financing options in the logistics sector. Findings- When a logistics company agrees to work with blockchain technology, it enrolls in an intensive collaborative effort. This is because much of it involves facilitating reliable co-operation between multiple entities, including state institutions of all types, industrial organizations, regulators, partners, and even competitors public and private organizations. Collaboration platforms have been created to enable competitors to work together to research the implementation of blockchain technology, taking the very competitive financial services industry example. Although competing cooperation does not seem intuitive, economies of scale affect the value of the blockchain. When more parties agree to use a single blockchain solution, more value is generated for each participating organization. That's why several blockchain consortia appear in the logistics sector. Conclusion- Fintech’s provide logistics service providers with an opportunity to expand their service portfolio. In particular, they can increase their role in the supply chain and add value to their business. By reducing risks and costs, customers logistics service providers have real-time insight, reliable supply-chain data can provide them with commercial opportunities for new enhancements. These services can gradually change the role in the supply chain. Logistics service providers that want to make the industry strategic are trying to fully understand these markets in their decision to enter new markets. At this stage, it is important to enhance the infrastructure investments and to encourage governments to invest in transportation. According to the OECD, changes in infrastructure construction and investment decisions, including maintenance, will require investments in the industry globally from 2010 to 2030 of $220 billion per year. For roads, infrastructure needs, maintenance needs have emerged. According to the model employed, maintenance needs and infrastructure expenditure varies between 3.3 percent of GDP. Low-income countries require an additional investment of 2.5 percent of their GDP for middle-income countries and 0.76 percent for high-income countries. Keywords: Logistics, supply chain, blockchain, fintech, smart contracts. JEL Codes: M10, M15, M16