With the rapid development of the global economy and the escalating complexity of the competitive environment, modern enterprises are now exploring a new and effective management model. As an advanced and effective modern management pattern, supply chain management (SCM) emerges as the times require. This article depicts some basic theories of SCM, and puts up that IT is the key to SCM. Then it describes that SCM is an effective approach to strengthen the competition advantage of modern enterprises. Finally, some proper ideas and strategies are suggested concerned with SCM in Chinese enterprises.