The supply chain is the system that moves goods, services, and raw materials worldwide. Supply chain stocks include transportation companies (such as railroads, trucking companies, and shippers), delivery companies, and freight companies. They also include logistics companies, supply chain software businesses, and services companies.
Global supply chains have come under severe pressure in recent years due to:
- Trade tariffs
- Geopolitical tensions, such as conflicts in Ukraine and the Middle East, which are spilling over into trade disruptions
These pressures have led to negative revisions to earnings estimates, higher prices, and fears of a recession. For decades, increasingly interconnected and interlinked global supply chains have operated under Just-in-Time principles. Under this strategy, materials and products are moved just before they are used or sold, leaving the supply chain susceptible to sudden shocks.
Top supply chain stocks to consider
NYSE: UPS
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NASDAQ: CSX
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NASDAQ: ODFL
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Using Trimble's hardware and software, trucking companies can monitor and adjust their fleets in real time. By doing so, they can increase fleet utilization and reduce fuel costs.
Additionally, trucking is a vital component of the supply chain. Trucking companies transport raw materials and finished goods to distribution warehouses and, ultimately, to stores or directly to customers. As a result, Trimble's technology can improve return on investment across the supply chain.
NASDAQ: MANH
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FAQ
Supply chain stocks FAQ
About the Author
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Manhattan Associates, Old Dominion Freight Line, and United Parcel Service. The Motley Fool recommends FedEx and Trimble. The Motley Fool has a disclosure policy.
