Supply Chain Investment trend in 2024

Date:

If you’re an accredited investor, you likely have a lot of opportunities that come your way. But have you considered investing in supply chain financing? While no investment is without risk -- which is why you want highly curated offerings such as those on Yieldstreet’s platform -- high returns are possible. But is investing in supply chain a good idea in 2024? The answer is yes, but let’s explore.

What is a Supply Chain?

Generally, this is the network of individuals, companies, resources, and technologies involved in a product’s creation and sale. This means everything from delivery to the manufacturer of supplier source material, through to delivery to the end user. 

What is Supply Chain Finance?

Supply chain finance (SCF) refers to technology-based solutions that seek to reduce financing costs and heighten business efficiency for purchasers and sellers in a transaction. Here, suppliers are paid quicker, and buyers gain more time to clear their balances. Supply chain financing usually pays all earned interest at maturity.

What Role do Investments Play in the Supply Chain?

The investment chain is where most of the money for a project derives, especially during its development stage. Capital flows downstream to the project from accredited investors as well as lenders, shareholders, and insurers. Some of the investors fund the project directly, while others go through one or multiple parent companies.

Why Do Companies Invest in Supply Chain?

In the modern business space, a smooth-running supply chain is paramount. Also, that supply chain must be flexible. An elastic supply chain allows companies to adapt to market changes and take advantage of opportunities. Through implementation of optimal approaches and technologies, organizations can increase their resilience and set themselves up for enduring success. 

Is Investing in Supply Chain Still a Good Idea?

Yes.  Supply chain finance has been primarily driven by the supply chain’s complexity and globalization, phenomena that continue to increase. Further, investors can diversify their portfolio by adding supply chain financing to their holdings. Portfolio diversification mitigates risk and is key to long-term investing success.

There are sectors of the manufacturing economy that will likely shift toward a more domestic orientation. Such shifts could also result in more long-term opportunities for investors. Because the federal government has focused on semiconductor manufacturing amid geopolitical and security concerns, companies that are part of the semiconductor supply chain, or that build semiconductors, stand to experience sustainable revenue growth.

Similar opportunities are likely to play out in domestic renewable energy, automation hardware and software, as well as in ground transportation and industrial real estate. It’s a good idea to ask your financial advisor how you could benefit from taking positions in the prospective beneficiaries of these trends.

While investing in supply chain is a good idea, an accredited investor would be wise to go through a private-market investment platform that engages in selective deal sourcing.

Contact Information:
Seba Koshy
Account Manager
[email protected]


Original Source: Supply Chain Investment trend in 2024

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