Effective supply chain management practices has become a potentially valuable way of securingrncompetitive advantage through customer satisfaction since competition is no longer betweenrnorganizations, but among supply chains. This research used three dimensions of SCM practicern(collaboration, information sharing and logistics design) tests the effect of SCM practices onrncustomer satisfaction. The data for the study was collected from 68 employees of Ethiopian SugarrnCorporation. In addition, interview with department team leaders was done and a questionnaire alsornhas been distributed for 50 customers for supporting data .The relationships proposed in thernframework were tested using Pearson correlation, and the causal relations were analysed usingrnregression analysis. From the result of the analysis it is concluded that there is strong relationshiprnbetween each SCM practices (Collaboration, Information sharing and Logistics design) and customerrnsatisfaction. Therefore, in order to achieve advancement in marketing and financial performance inrnthe long-run through enhancing customer satisfaction, it is better for the organization to give duernemphasis to the constructs of those SCM practices