During the past few years, there have been tremendous attempts among various companies to implement the principles of supply chain management to increase their capabilities. Reduction in supply chain cost is an important element to support competitive advantage. However, to manage the cost of supply chain, managing target and order costs is essential. Reduction in both target cost and order cost is crucial to maintain reasonable supply chain cost, which directly influences the competitive advantage. Thus, the primary objective of this study is to support competitive advantage by the help of integration between target cost and order cost. To achieve this, quantitative research technique was adopted based on a survey technique and 300 questionnaires were distributed among the managerial employees of supply chain companies in Iraq. While analyzing the data through Smart PLS 3, it was revealed that any reduction in target cost and order cost could decrease the overall supply chain cost and this helps to sustain competitive advantage. Therefore, supply chain cost plays the mediating role to enhance competitive advantage through integration of the target cost and the order cost. Finally, this study is beneficial for supply chain companies to enhance competitive advantage through reduction in supply chain cost.