The main purpose of this study was to investigate the effect of supply chain management practice and its effect on the operational performance of selected wheat flour factories in Adama city. Descriptive and explanatory research designs were used. The sample of the study was senior officers/executives in charge of SCM practice of the targeted factories who have rich experiences about the operation and management of supply chain practices in their respective factories. Those executives include

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... neral manager, production or technical manager, supply or purchasing manager, marketing manager, commercial manager, and inventory manager. The major data collection tools in this study were questionnaires and interviews. In the questionnaires, there are a set of questions included in each aspect of the SCM which were derived from extensive literature as well as the researcher's discussion with supply chain professionals. The collected data were analyzed using both descriptive statistics and inferential statistics. Accordingly, the major analysis of the findings indicates that the practice of the factories regarding their relationship with suppliers was focused on helping them to meet the factory's needs rather than building long term stable strategic partnership. In relation to the internal integration of the factories, the finding reveals that there is a strong internal operation within the factories. 14 macaroni and spaghetti parallel with the production of the flour. Wheat flour is both industrial as well as consumer goods. Increased application of wheat flour for industrially processing of food products such as spaghetti and macaroni would also have great bearing of future wheat flour demand. It is also applied for bread making, cakes and biscuits and porridge at household level. (Sutton and Kellow, 2010). Agricultural resources that are the base for biscuit, spaghetti and macaroni manufacturing are available in fairly large quantities, being the main source of comparative advantages of the sector. However, actual utilization of the sector largely depends on the ability to operate efficiently and the ways industries are managed. It is generally believed that resources in the flour manufacturing industries are being utilized inefficiently. Thus, managing the Supply Chain practice in this flour factories have a major impact on the performance of all parties involved in the chain and the production of wheat flour for industrially processing food products and for consumer's consumption. Therefore, this research is made to investigate the practical supply chain management practices and its effect on the factories operational performances of wheat flour producing factories in Adama city, Oromia regional State, Ethiopia.