The supply chain concept is theorized from the formation of a value chain network consisting of individual functional entities committed to provide resources and information to achieve the objectives of efficient management of suppliers as well as the flow of parts. The understanding and practicing of supply chain management have become an essential prerequisite for staying competitive in the global race and for enhancing profitability. In this paper, the role of SCM (Supply Chain Management) will be described and the results of the empiric research conducted in Croatian graphic companies will be presented. Research framework is based on a theoretical framework and includes two main dimensions: SCM\r\npractices (strategic supplier, partnership, customer relationship, level of information sharing and quality of information sharing, postponement) and competitive advantage (price and cost, quality, delivery dependability, product innovation, time to market). All findings of this empiric research will provide better understanding of SCM benefits for graphic, and production companies as well, which will be able to achieve competitive advantage through the tactical planning and control, but also with respect to strategic intent. Also, results of the empirical research provide justification of a framework that identifies five key dimensions of SCM practices and describe the relationship among SCM practices and competitive advantage observed through the five dimensions.
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