Supply Chain Management (SCM) have been widely acknowledged as very important business strategy in the enhancement of competitiveness of enterprises. Many trends in SCM and its implications have been pointed out and a management platform has also been introduced by earlier writers Considering various trend, implication and design of supply chain, a study on how SCM implemented in a SME in Indonesia which produces various coconut-based products was conducted. This paper briefly reviews some concepts in supply chain management. The aim is to up date and disseminate some of the latest concepts. The supply chain management applied by an SME, namely PT Tropica Nurifera Industry (TNI), is also reviewed. Key to the success of PT. TNI is its ability to establish win/win and very strong collaboration with two main players in the supply chain, i.e., ‘many small suppliers’ and knowledge institutions. The company adding knowledge institutions in their supply chain management, and realizing the important of role of the knowledge institutions to enhance their collaboration with many small suppliers. This enables the company to create sustainable innovation at the grass root level.