Abstract:
The main goal of supply chain practice is to produce the right product or service, in the right
quantity, at the right time and at minimal cost with the purpose of satisfying customer
requirement and internal target as efficiently as possible. Supply chain practices are initiatives
that influence the whole supply chain. Even though, these practices have great influence on the
operational performance of any organization, it is affected by contextual factors such as type of
industry, firm size, and length of supply chain. Therefore, the general objective of this study was
to investigate the effect of supply chain management practices on the operational performance:
the case of EPSA Jimma branch. In order to meet the objectives of this research, the study
adopted quantitative method and the relationships proposed in the framework were tested using
descriptive research method. The primary data was collected from 97 employees of EPSA. The
collected data were analyzed using descriptive statistics, correlational and regression analysis.
The major finding of the study indicated that supply chain management practices i.e. strategic
supplier relationship management, customer relationship, internal integration, and logistics
management have positively affected the operational performance of the organization. However,
the organization has expected to improve its supply chain practices in order to improve the
operational performance even further. Specifically, EPSA has to improve involvement of
suppliers in planning and goal setting, the company should also provide on time and accurate
information to its suppliers ‘to integrate the external part with the internal one. In addition, the
organization should improve its determination to meet the customer needs and demands
