International Journal of Financial, Accounting, and Management (IJFAM) ISSN: 2656-3355, Vol 4, No 3, 2022, 285-302 https://doi.org/10.35912/ijfam.v4i3.925 The Effect of Supply Chain Management on the Performance of Commercial Bank Organization in Ethiopia's Case of Jimma City Sultan Jemal Jimma University College of Agriculture and Veterinary Medicine, Jimma City, Ethiopia sultanj100@gmail.com Article History Received on 26 November 2021 1 st Revision on 20 January 2022 2 nd Revision on 7 March 2022 3 rd Revision on 11 March 2022 4 th Revision on 22 April 2022 Accepted on 18 May 2022 Abstract Purpose: the main purpose of this research was to examine the impact of supply chain management (SCM) practice on performance in bank organizations in Ethiopia. Research methodology: Cross-sectional descriptive survey design was employed and three purposively selected government banks were studied using a census sampling approach, the data was collected through pretested questionnaire. The main quantitative analysis was employed using STATA 14. Results: status of SCM practice was at a high level. Spearman correlation analysis revealed that ease of access system support, efficient ordering, lean program, lead time, and customer relationship uniting SCM best practice with profitability have a positive relationship, however ordinal logistic regression analysis revealed that SCM practice dimensions customer relationship with SCM best practice and lean program have a positive significant impact on the profitability of bank organization. Limitations: The study performed at Jimma city may not represent all business process office employees of the bank and further longitudinal study required Contribution: This study offers practical and vital means for supply chain managers to appraise and measure supply chain performance practices. For instance, SCM practices can be employed to assess the degree to of firms' performance practices have been achieved and their impact on enhancing satisfaction. Keywords: commercial bank, performance, profitability, SCM practice, Ethiopia How to Cite: Jemal, S. (2022). The Effect of Supply Chain Management on the Performance of Commercial Bank Organization in Ethiopia’s Case of Jimma City. International Journal of Financial, Accounting, and Management, 4(3), 285-302. 1. Introduction Supply chain management (SCM) deals with linking the organizations within the supply chain in order to meet demand across the chain as efficiently as possible. It is a device that directs operation towards the successful achievement of desired performance. Anggraini, Hamiza, Doktoralina, and Anah (2018) explain that both SCM and the working of financial institutions are highly linked to each other in which SCM is a meaningful tool for the banking firm’s performance. This implies that the use of effective SCM practices has become a potentially valuable means to achieve organizational performance. Banks can play a significant role in the integration of physical and financial supply chains that is they can contribute to the enablers of integration, namely, supply chain coordination, collaboration, information sharing, and information visibility (Silvestro & Lustrato, 2014). Researchers have underlined the significance of researching the effects of internal integration between the SCM business unit and the information technology activities of the organization (Azadegan, Syed, Blome, & Tajeddini, 2020). Efficient operations need a planned flow of resources and information whereas banking operation is not exceptional. The primary basis of banking is transforming money in terms of deposits and lending them