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Supply chain management (SCM) is the 21st century global operations strategy for achieving organizational competitiveness. Companies are attempting to find ways to improve their flexibility and responsiveness and in turn competitiveness by changing their operations strategy, methods and technologies that include the implementation of SCM paradigm and information technology (IT). However, a thorough and critical review of literature is yet to be carried out with the objective of bringing out pertinent factors and useful insights into the role and implications of IT in SCM. In this paper, the literature available on IT in SCM have been classified using suitable criteria and then critically reviewed to develop a framework for studying the applications of IT in SCM. Based on this review and analysis, recommendations have been made regarding the application of IT in SCM and some future research directions are indicated.