Despite the fact that commercial companies today operate not only in local or national markets rather in a global market, no single company is capable of controlling the entire supply chain, from the collection design stage to supply of product to customer. It follows that the logistic chain will include commercial ties between many companies, where each company will strive to achieve its income and profits in the area of its competitive advantage. It will not have any interest in the other companies in the chain, except for those that work with it directly. In essence, each company is the customer of the company that precedes it in the logistic chain, and the supplier of the company that follows it in that chain.
Managing the chain supply includes managing all of the activities involved with planning, purchasing, processing, and managing of logistics. This includes, among other things, coordination and cooperation with all other chain partners, leading players (suppliers, manufacturers, and customers) as well as co-stars (such as intermediaries, suppliers of outsourced services, and others). Managing the supply chain combines managing supply as well as demand, both within organizations and between them.