Based on the literature review, this paper constructs a theory model of the relationship between the supply chain management (SCM), competitive advantage and business performance, aiming to explore the relationship between the SCM and business performance. Data of this study was obtained through the way of questionnaire survey. Structural equation model (SEM) was used in the empirical study on the relationship between the SCM, competitive advantage and business performance. The research results show that: SCM not only has a significant positive impact on business performance, but also through the competitive advantage has an indirect positive effect on business performance. Enterprises especially at the end enterprise value chain should establish links with the supply chain upstream, so as to construct their competitive advantage, and ultimately realize their business performance.