Supply chain word is probably regularly heard.  In Bahasa Indonesia we frequently hear the meaning of supply chain as “procurement or supplying chain or material and service supply”.  Basically, supply chain is an organization network connected with upstream and downstream relations in different process and activity that create value which exist in material and service in user and last customer hands. The different process and activity involve relations between the subjects from producers or manufacturers, creators or practitioners, distributors or agents until users or last step customers.

Their relations pattern not only being “a connected each other chain” but also being “a network chain”. J. Aitken – expert of the field, further, definite it   as “an organization network that related each other and need each other and together work to monitor, process and fix in material and service procurement and also information from the producer or manufacturers until the users of last step customers”. From here we know that managerial philosophy in supply chain is management of a chain network of material and service procurement as one unity integrated, not separated.

Supply chain concept previews the process, activity and relation occurred and related one another, effects  the organization network and also the subjects inside in a popular approach to study about material and service procurement widely include market competitions.
If we see generally, local farm and plantation product main export commodities supply chain usually follow a long step. This long chain is starting from the farmer/producer, collectors, sellers/cooperation institution, huge trader/first practitioner until exporter. 

Some commodities, for example coffee or fragrance oil (from the process of nilam oil), if we describe from the first to final product  of that commodities , after accepted by importer or different area buyer, to get to the final consumer is still a place for intermediary agents in further chain network. Importer will sell the commodity to the processor (industry) that will further proceed become deep processing product or finished product, then industry will sell it to big distributors, and it will sell it again to big and small vendor, from supermarket until a small shop.

The commodity chain network management as a part of one integrated unity established the partnership between its subjects.  Seen by several problems for example quality inconsistent, low farmer income, price transparence, low product add value, market and information access limit, problems in pre-export credit financing or capital back up etc. Every subject in supply chain must try to answer every kind of problems step by step by re-studying the supply chain, if it is need to modify.

Market competition dynamics and consumer certain product qualification preference change valued higher in export countries which opened new business change. Supply chain modification by shorting distribution line, making business partnership between farmer or cluster, cooperation enterprise and managing company to a wider market access by direct relation between farmer and the cluster, cooperation enterprise and market access manager company is wider by open direct access with foreign buyer. It is expected to be a strategy choice to face global competition especially in taking advantage from market chance or new business opportunities which come from consumer preference change an in fixing commodity or local and national export product market. (Suhendra)