Abstract: This paper inquires how to apply multi-agent and XML to establish an integrated framework of a supply chain management system. This system is based on multi-agent and internet as the infrastructure for corporate information exchange, and XML is applied to serve as the coding language in corporate information exchanges; both are implemented to meet the demands of the supply chain system. The paper offers a Multi-agent Negotiation Algorithm which involves the co-operation of distributed multiple agents, and electronic purchase is discussed as a case study to explain the interaction process of this system between different enterprises.