Demand chain is when businesses work together to deliver products and services to customers. It starts when customers order an item and ends when they have it in their hands. Along the way, businesses must plan, coordinate, and manage the resources and materials needed to get an item to its destination. For example, a company might place an order for a toy with a toy manufacturer to make it. The toy manufacturer then needs to source and manage the parts to make the toy, like plastic or batteries. Once it is made, the toy needs to be packaged and shipped to the customer. The demand chain is how all of this happens.