Lead time has long been recognised as an important metric for assessing the performance of a business process;the core of time-based competition supply chain management strategy is lead time compression, and lead time compression becomes the source of the strategic advantage of supply chain. This paper applies logic approving and numerical analysis to study the effect of lead time compression on profit of supply actors and how to achieve supply chain channel coordination on the assumption that the market demand forecast accuracy vary with lead time. The result shows that lead-time compression can achieve the Pareto improvement of the supply chain actor＇s profit when the service level of the supply chain is less than 0.5 ; when the service level of the supply chain is more than or equal to 0.5, after linear transfer payment compensating mechanism is introduced, Pareto improvement of the supply chain actor＇s profit is achieved, and supply chain channel coordination is attained