Supply chain is complex, it is characterized by many activities scattered across multiple functions and organizations, and this poses many different challenges for effective supply chain coordination. In order to meet these challenges, one can establish a unified system to facilitate the coordination. In addition, a variety of coordination mechanisms have been proposed for supply chain coordination to address a range of issues that arise during the supply process. This paper analyses the articles published in international journals from 1994 to 2018 and presents a systematic literature review to clarify problems and challenges in supply chain coordination and various supply chain coordination mechanisms used in supply chains. These study not only demonstrate the importance of supply chain coordination but also help researchers and policymakers use these methods effectively to solve problems in their supply chain activities. Index Terms-supply chain management, coordination mechanisms, challenges, optimize performance of supply chain.