The main objective of this study was to investigate the supply chain management practice & its effect on the operational performance of the Amhara Pipe Factory PLC. The researcher used a quantitative approach and descriptive and explanatory research design to achieve the objective of the study. The study also used primary data source and the data collection instrument was structured close ended survey questionnaires using the five point Likert scale adopted from different scholars in previous studies. The sample size was 159 respondents using simple random sampling technique and 154 questionnaires were filled and returned for the analysis. The researcher used the Statistical Package for Social Science (SPSS) tool in order to find the results of descriptive and inferential statistics analysis. Some studies on only few components of SCM were taken as in dependent variable to study the effect of SCM on operational performance. This study therefore targeted to fill this gap by studying the effect of five major components of SCM on operational performance. The result of this finding indicated that the four predictors (Strategic supplier partnership, Level of information sharing, Customer relationship Management, and Outsourcing of Services) have significant and positive coefficient of Beta values indicating that they have positive effect on operational performance under the study. While Logistics process responsiveness has insignificant alpha value, which indicated that it has insignificant effect on operational performance under the study. It is recommended that Amhara Pipe Factory PLC should improve on time and accurate information exchange with the suppliers and the management of the Factory also should set up proper and consistent organizational and group based supply chain relationship management activity such as integrated selling, marketing and customer service targeted at mutual benefit with their customers. It had better to maintain current established collaboration with their partners and make favorable, good habit of relation for their business effectiveness and the factory has to work more on solving the problem in equipment set up time for delivering service to the customers.