A more realistic representation of the supply chain is shown in Figure 1.2, where each link can connect with several others. A focal firm is shown at the centre of many possible connections with other supplier and customer companies.
The supply chain can be seen in this diagram as a number of processes that extend across organisational boundaries. The focal firm is embedded within the chain, and its operational processes (‘inside’) must coordinate with others that are part of the same chain. Materials flow from left (upstream, or ‘buy side’) to right (downstream, or ‘supply side’). If everything is as orderly as it seems, then only the end-customer (to the extreme right of the chain) is free to place orders when he or she likes: after that, the system takes over.