Supply chain management concept (SCM) was begun to be accepted by the industry, but there were several barriers identified during the application of this concept. The purpose of this research was to identify the barriers faced by manufacturing industry especially among SMEs in implementing SCM. This study was carried out using questionnaire distribution method to research sample consisting of SME manufacturing company. The results shows the list of obstacles existed in SCM implementation in industry with involvement of; lack of skill; lack of knowledge; lack of power; lack of infrastructure; and lack of trust. Extensive discussion based on previous studies/research related to SCM was done in this research. Improvement in SCM which can be made as reference by researcher in the future was proposed. It hopes the research can support the body of knowledge.