Supply chain management (SCM) has now evolved into a strategic, proactive function that plays instrumental role for competitive advantage. The growing strategic importance of SCM has given rise to the need for making use of advanced information technology (IT) such as the Internet for efficient coordination of the various supply chain (SC) activities. The need for SC e-integration is widely advocated both in business and academia. However, SC e-integration is not an easy venture, nor is it without risks and challenges. In this study, we investigate the requirements for SC e-integration, and the challenges and the risks associated with e-collaboration. Consequently, we propose the levels of SC e-integration matching the different circumstances which characterize a firm.