Although Thai garments have been recognized for theirreliable and acceptable quality, the manufacturers arelosing their edges because of the high competition inglobal market. In order to gain back their competitiveadvantages, Thai textile manufacturers are required to putemphasis on the product development by using innovationto reduce production cost and to provide higher valueadded final products than the economy of scaleproductions like China and India. As a result, they need tocreate strategic partnership with suppliers, transportation,distributors and warehousing companies. This SupplyChain Management (SCM) strategy should be the mosteffective and efficient way for Thai textile manufacturersto stay successful.This paper focuses on analysis of the current situation ofThai textile industry, especially on the strategy andapplication of SCM that could be utilized to improve ourcompetitiveness. In addition, this paper discusses aboutwhat needs to be done in order to better manage thesupply, relationship and collaboration among all elementsin the chain.