Eventhough supply chain management (SCM) concept has been accepted by the industry, there are several barriers with were identified during its application. The purpose of this research is to identify the obstacles and problems faced by manufacturing industry especially among small medium enterprices (SMEs) in implementing SCM. The results identified obstacles in SCM implementation in industry which consists of; lack of workforce; lack of communication; lack of knowledge; lack of trust; and lack of support from the upper management. Extensive discussion based on previous studies/researches related to SCM was done in this research.