This study was conducted to investigate the effects of supply chain management practices on organizational performance in the case of Derba cement factory. To study the effect of supply chain management practices on organizational performance, six key dimensions of SCM practices (strategic supplier partnership, customer relationship, quality of information sharing, inventory management, lean practices and postponement) were used as independent variables, while growth in market share, return on investment, the growth of sales, profit margin on sales and overall competitive position variables were used to measure the organizational performance. This study adopted both descriptive and explanatory types of research designs with a mixed approach. Data for this study was collected using a self-administered questionnaire and structured interview. Since the numbers of employees were small the researcher used census method for questionnaires and purposive sampling method for interviews. The collected data were analyzed using both descriptive statistics (mean and standard deviation) and inferential statistics (correlation and multiple regression analysis) with SPSS 22. The major findings of the study revealed that there was a low level of practical implementation of SCM practices in Derba cement factory and those all-independent variables had a positive effect on organizations performance. Combination of all the six practices studied had a significant impact on organizational performance. Eventually, the researcher recommends that the case company in order to boost the market share, return on investment, the growth of sales, profit margin on sales and overall competitive position should give due attention on the implementation of supply chain management practices.