Strategic supplier relationship has emerged as a major strategy for organizations to remain competitive in the ever dynamic business world and many organizations have adopted it with much success. The aim of this study was to examine the effect of supplier relationship management (SRM) practices on competitive performance of manufacturing firm in case of Amhara pipe factory (APF), Ethiopia. Hypotheses related to the relationships between each SRM variables and competitive performance were developed and tested in this study. Positivism, a quantitative cross-sectional field survey research design was employed for this study and measurements of constructs (questionnaire) were developed according to previous studies. The respondents of the study were the employees of the APF in the area of management, process/production management, quality control, purchasing management, finance, marketing, planning, maintenance, HRM and etc. The data was gathered through standardized questionnaire for which its reliability and validity were tested by using Cronbach’s Alpha, EFA and item total correlations. 159 employees were selected by using stratified random sampling. 148 (93.08% effective response rate) questionnaires were returned and used for data analysis. Using SPPS, Tests of significance for all variables under study were conducted using multiple linear regressions. As the result for regression analysis, Trust based relationship (b=0.224), has the most positive influential effect on competitive performance, followed by quality of information sharing, supplier development, and supplier quality improvement (b =.212, b =.156, and b =.127) respectively at p value <0.005. But the result of supplier lead time reduction was found to have negative and insignificant effect. It was also found that there is a strong significant relationship between SRM constructs and competitive performance represented by R2 value of 0.519 which translates to 51.9. % variance explained by these five independent variables. From this it has been concluded that SRM is the most important variables to be considered by all manufacturing companies to be competitive in the current turbulent environment.