Abstract: Agile response to the market, swift research and development of new products for the customer and survival through competion has become the objective of an enterprise and is regarded as the mode of manufacturing in the 21 century. Virtual enterprise is an important method to realize agile manufacturing, the mode organization of enterprises and cooperation between modern enterprises in the 21 century. It is the aim of this paper to expound some basic concepts, characteristics and implications of the virtual enterprise, to analyse its fundamental idea, while establishing the process, selecting the principle of participant enterprises, explaining its mode of implementation and method of management in a virtual enterprise based on the supply system. Application of virtual enterprise technology can result in expanding the scope of disposal of resources , in forming superiority in competition and in realizing the best economic benefit in the society.