Purpose The paper aims to focus on and discuss the differences between the demand chain led organization and the supply chain led organization. Design/methodology/approach The paper uses a desk‐based approach to data collection and provides analysis and discussion of the issues. Findings The paper finds that the differences between the demand chain led organization and the supply chain led organization are ones of emphasis. Supply management is cost‐led and attempts to provide an adequate level of service. By contrast the demand chain approach is a broader view of relationship management taking a view that the two overlap and that effective management is to integrate the two. Originality/value The paper focuses on the increasing importance of demand chain and supply chain management decisions.