This study aims to find about the impact of supply chain management on competitive advantage and operational performance. This research was conducted on Micro Small and Medium Enterprises (MSMEs) clothing distribution store in Daerah Istimewa Yogyakarta with a population of 53 MSMEs. Methods of data collection using questionnaires distributed to the owner or manager of MSMEs clothing distribution store in Daerah Istimewa Yogyakarta which has been registered on the Directory of MSMEs Trading Industry in Jogja Clothing Association Daerah Istimewa Yogyakarta of 2016. The analysis tool used in this study was simple regression which used SPSS software version 19. Based on the analysis that have been made the result are supply chain management have significant effect on competitive advantage and organizational performance, and competitive advantage have a significant effect on organizational performance.