This paper presents research into applying virtual environment (VE) technology to supply chain management (SCM). Our research work has employed virtual manufacturing environments to represent supply chain nodes to simulate processes and activities in supply chain management. This will enable those who are involved in these processes and activities to gain an intuitive understanding of them, so as to design robust supply chains and make correct decisions at the right time.A framework system and its hierarchical structure for visualising and simulating supply chains in virtual environments are reported and detailed in this paper.