Supply chain management practice is a vital area of management within most firms, whether they are manufacturing or service firms. Supply chain management practice is important because it creates value for customers and suppliers of the firm, and value for the firm’s stakeholders. The purpose of this study was to explain the effect of supply chain management practice on the operational performance of commercial bank of Ethiopia at Bahir Dar main branch. This research conceptualizes and develops five supply chain management practice (strategic partnership, customer relation management practice, quality information sharing, information technology, and lean practice).the study was support by system theory, agility theory, resource dependency theory and network theory. The paradigm of the research was positivist world view. Quantitative approach was used. The study employed both descriptive and inferential analysis. Explanatory cross sectional census design was employed and used primary source of data. The Data was collected through questioner from 93 respondents in Bahir Dar main branch. Data was analyzed by aid of STATA version 14 and Statistical Package for Social Sciences (SPSS) version 20. Cronbach alpha was used to check reliability test. Spearman’s rho Chi square test statistics were applied for testing the association between dependent and independent variable. Ordinal logistic regression model was applied and parallel line test multi co linearity test, goodness of fit test were tested and finally Statistical analyses were performed with the data in order to test the five main research hypotheses. The main findings indicate that, lean practice has no significant effect on operational performance in Bahir Dar main branch. On the other hand, information technology, customer relation management practice, strategic partnership practice, and quality information sharing practices are positively determines operational performance of the branch. Especially information technology has the most statistical significant effect on operational performance of the branch.