what is supply chain analysis?

What is Supply Chain Analysis?

Hi friends!Hope you are fine and doing well. Today, we will discuss about Supply Chain Analysis. I hope it will be beneficial for you. I always try to write in easy and understandable language. Supply Chain Analysis: Introduction Supply chain is a process where raw materials are transformed into finished products like iPhones using various components such as lithium batteries, aluminum, glass, chips, and cameras. For a company, supply chain analysis is important to understand and identify the components required for manufacturing. How to Trade Supply Chain Analysis: To trade using supply chain analysis, you need to understand certain aspects of the forex market. First, you should familiarize yourself with the companies you invest in and their supply chains. You can gather information from the company's annual reports and also stay updated with business-related news from sources like Bloomberg or Wall Street. If you have access to software platforms like Bloomberg, it can provide you with relevant information for analysis. Importance of Supply Chain Analysis in Trading: Supply chain analysis is crucial for stock or index traders in the forex market. It helps investors assess the performance of companies they follow. For example, if General Electric, a major engine supplier, announces a slowdown in business, it may indicate potential issues for companies like Boeing. Similarly, if companies like Intel or NVIDIA report slow sales, it can affect hardware companies like Apple, Dell, or HP. Supply chain analysis plays a significant role in investors' decision-making, as it can impact various stocks and companies depending on changes in supply and demand. Usage: Products & Currencies Supply chain analysis not only focuses on companies but also considers factors like crude oil and currencies. For example, when crude oil prices rise, stocks of oil companies like Exxon Mobil or Chevron may increase. Similarly, when gold prices go up, shares of gold mining companies may also rise. On the other hand, if crude oil prices increase, it can negatively impact companies' profit margins, leading to a decrease in their stock prices. As a trader, you should pay attention to these factors and analyze their potential effects on the companies involved.