Transportation plays important role in Logistics supply business function and in the generalrncompany’s performance through the planning, implementation and management as well asrneffective control of processes linked to distribution of materials, production inputs, informationrnand financial flows of an organization. The main objective of this study was to examine thernTransportation plays important role in Logistics supply chain performance in the case ofrnEthiotelecom with respect to logistics Supply management practices and their performance i.e.rnOrganizational performance, Competitiveness, Logistics Efficiency, Logistics Effectiveness,rnLogistics Differentiation, Customer Satisfaction, Profitability of Business and Timely delivery ofrnInputs/ Products. Descriptive and explanatory research designs as well as quantitative researchrnapproach were employed in conducting the study. The population of the study was employees ofrnEthio telecom working in warehouse, procurement, fleet operation, facilities, inventory andrngoods shipment from which the sample was drawn. Stratified random sampling was used tornselect the appropriate sample of the study. Data was collected using questionnaires and analyzedrnusing SPSS. Descriptive analysis namely percentage, mean and standard deviation; andrninferential analysis namely Pearson correlation and multiple linear regression were employed.rnThe study indicated that enhanced transportation facility use has significantly boosted logisticsrnsupply management performance in Ethiotelecom to a reasonable account.rnThe study revealed that logistics supply chain management practice and its performance whichrncontributed to Ethiotelecom organizational logistics supply chain performance efficiency,rnbecause of the differentiation and effectiveness of transportation by enabling timely deliveryrninputs and product services to a larger extent. The study also showed that there was significantrnpositive relationship The study also revealed that Ethio telecom faced logistics Supply Chainrnmanagement quality and yet not fully utilized its logistics supply system as a result moderaternlevel transportation facilities. The study recommended to enhance the logistics Supplyrnmanagement practices and boost overall business preface, the organization has to optimize thernuse of efficient transportation facilities, reduce level of logistics supply service and