This study aims to examine the effect of demand chain management on competitiveness. This research is explorative with a quantitative approach. The population in this study were all small and Medium Entreprisses (SMEs) of processed marine products in the City of Probolinggo. The sampling technique is simple random sampling to be representative. This is because the number of population is scattered in several villages and as many as 196 processed marine products. Thus, 70 SMEs will be selected as respondents and Focus Group Discussion participants as well. Data collection was carried out through the distribution of online questionnaires that were valid and reliable. Primary data were analyzed using a technical analysis of structural equation models with the help of a Partial Leastquare (PLS) data processing program. Based on the results of the analysis shows that there is a significant influence of demand chain management on competitiveness. It means, in order to improve the competitiveness of the SMEs, these business actors can optimize the demand chain management.