Mellanox Technologies Brochure — October 2018

CONTINUOUSLY STRIVING TO DELIVER PROCUREMENT PROWESS

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MELLANOX TECHNOLOGIES: EMPOWERMENT THROUGH PROCUREMENT WRIT TEN BY

DA LE BENTON PRODUCED BY

HE Y K EL OUNI

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Through a vision of continuous improvement, Mellanox Technologies places procurement at its heart

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n the procurement space, having a strong relationship internally with the wider business is proving

just as crucial as establishing a strong relationship with suppliers. Over the past decade there has been a paradigm shift 04

that has seen procurement move away from its traditional “support” function role as it becomes far more aligned to business strategy. Nowhere is this more apparent than Mellanox Technologies, a leading supplier of end-to-end interconnect solutions. Over the last few years Mellanox Technologies has gone to great lengths to ensure that its customer facing teams are fully supported by an efficient and robust procurement function.

“At Mellanox, procurement has a very special place,” says Oshri Cohen, Vice President of Purchasing and Logistics. “Procurement is involved at the very beginning of a project, through mass production and right

“ We are providing support throughout a product lifecycle and so what we are doing is overseeing product cost and deliverability from top to bottom” — Oshri Cohen, Vice President of Purchasing and Logistics.

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CLICK TO WATCH: MELLANOX TECHNOLGIES OVERVIEW 07

up until the product’s end of life. We are providing support all throughout a

the best people from within.

“The fact that I had the chance to

product lifecycle and so what we are

touch almost every operation issue

doing is overseeing product cost and

by myself, provided me the chance

deliverability from top to bottom.”

to learn a lot and prepared me very well

Oshri first joined Mellanox in 2007

to the role I’m holding today. When you

as an NPI Manager. Over the years

know, theoretically, what the right thing

his role evolved as he took on more

to do is and you’re connected to your

procurement responsibility before

organisational DNA, then your chances

taking on his current role in 2012. He

to take the right decision and do the

feels that this experience of growing

right implementation are very high,” he

within the company and developing a

says. “Luckily, I grew up inside Mellanox

strong procurement team is a testa-

and so did my great team. I think that

ment to Mellanox and its ability to grow

this is a winning formula to succeed.” w w w. m e l l a n o x . c o m

Through his career with Mellanox he has seen first-hand this shift in understanding what procurement can deliver

That is a short-term activity,” he says.

“Procurement today is responsibile to

to a business. He feels that now more

establish a strong enough supply chain

than ever before a good strong procure-

to enable company growth and even

ment function that is aligned to the right

bring added value to the company’s

vendors can be the key difference; not

customers. These values can be game

only in delivering success but staying

changers, as customers are exposing

ahead of competitors.

themselves less to commitments but

“Traditional procurement was centred around taking care of orders

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and essentially focusing on shortages.

still demanding complete times.”

“I think procurement has a main role

“Procurement today is a responsibility to establish a strong enough supply chain to enable company growth and even bring added value to the company’s customers” — Oshri Cohen, Vice President of Purchasing and Logistics.

of making sure that we are enabling

Mellanox to grow and to invest into

business on our end, while also

spaces it might not have done otherwise.

protecting the company from over exposure.”

As Oshri notes, the market have

“Customers are getting smarter and have access to greater information and technology,” says Oshri. “This allows

changed and are continuously chang-

them to compare better and to under-

ing as procurement continues to evolve.

stand where their investments could

The company prides itself on how it can

and should be made. If an organisation

continue to provide creative solutions

or a business intends to grow and

to meet the evolving demands.

intends to be better than its competitors,

It is this approach that has allowed

then it has to continue to find ways to

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become better and better and listening

this data to gain a better understand-

to customers is key to doing that.�

ing of those customers and suppliers

The technology conversation in procurement is defined more and

and a better insight into how Mellanox can grow and improve.

more by data and data analysis. With a supplier and customer base from all

SUCCESS THROUGH COLLABORATION

over the world, Mellanox has access

Vital to this understanding is collabora-

to incredible amounts of data and

tion between the procurement function

information. Through technology

and the wider Mellanox business.

solutions, Oshri and his team can use

Oshri is incredibly proud of the unique w w w. m e l l a n o x . c o m

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collaboration that procurement has

talk the same language and achieve

with the design team as it allows the

the corporate goals we get.”

two teams to create a roadmap to

For Oshri, the key to enabling

achieving greater cost savings while

success for Mellanox lies in fostering

enabling efficiencies together.

and developing collaborative relation-

“Collaboration is a must to achieve our goals,” he says. “We stay aligned

ships across the business.

“Procurement can be proactive or

in front of the HW team, around the

reactive. Working with HW teams, we

same targets of quality, cost and avail-

are getting involved at the very early

ability. This enables both groups to

stages of the product design process. w w w. m e l l a n o x . c o m

proactive in eliminating potential

CHANGING TECHNOLOGIES AND CHANGING CUSTOMERS

supply chain risks,” he says.

A particular challenge for companies

This allows procurement to be

“It makes our supply chain stronger and more robust. Once the products

logical innovation is understanding

are moving to mass production, opera-

the right technologies to implement.

tions are able to support those prod-

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in any sector embracing this techno-

In the quest to outweigh competitors,

ucts without any special issues

one could be forgiven for investing in

or surprises.”

technologies for the sake of keeping

“We know our customers are measuring us and so we constantly look to better understand how we are perceived, this leads to continuous improvement” — Oshri Cohen, Vice President of Purchasing and Logistics.

up, rather than investing smartly.

This is a challenge that Oshri recognises, but he understands that the most important part of the Mellanox equation is the customer. Through this understanding, Mellanox continuously challenges itself against a series of KPIs that are defined by the customer which allows the company to be more focused moving forward.

“We know our customers are measuring us and so we constantly look to better understand how we are perceived,” he says. “This leads to continuous improvement. Even from a technology perspective, we implement technologies and look at how it is received by customers.

We are constantly evaluating ourw w w. m e l l a n o x . c o m

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selves to ensure we are delivering

does its customer base. For him, Mel-

value to our customers.”

lanox could not succeed without them.

But how does Mellanox establish and

SUPPLIER NETWORK

foster relationships with key suppliers

A defining component of what Oshri

in order to continue to bring value to

strives to achieve with Mellanox is

Mellanox and its customers, while also

that strong and robust supply chain

growing and developing the suppliers

network. A procurement function can

themselves?

have all the best tools at its disposal, but

“We prefer to find partners that can

it’s all for nothing if there isn’t a supplier

provide us real added values in terms

network in place.

of technology, supply chain and quality

Oshri understands this and approach-

and we invest in those partner relation-

es Mellanox’s supplier network with the

ships as if they were our customers,”

same level of care and attention as he

says Oshri. w w w. m e l l a n o x . c o m

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“We should enable Mellanox to penetrate the new markets it aims to.

We should allow the company to compete by keep suggesting short lead times, competitive prices and best quality products ” — Oshri Cohen, Vice President of Purchasing and Logistics.

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“The strongest partners we have,

firmly believes that trust is devel-

are the ones we experienced some

oped through transparency and

difficulties with and we had to

communication.

manage a few crises. Real partners

“Very similar to marriage, such

are not only being measured when

relationships need to be maintained,”

the business is perfect and blooming.

he says. “Along the way we must keep

The painful hours are the ones to

transparent in order to hear and say

expose the real partners.”

our observations, so in case any

Key to fostering these relationships is establishing trust and Oshri

adjustments need to be done, we will know about it and act accordingly.” w w w. m e l l a n o x . c o m

“ We prefer to find partners that can provide us real added values in terms of technology, supply chain and quality and we invest in those partner relationships as if they were our customers” — Oshri Cohen, Vice President of Purchasing and Logistics.

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THE FUTURE OF MELLANOX

positioned in the core of the business,

As part of its entire DNA, Mellanox

but there is always place to improve.”

will continuously strive to improve in

he says.

order to better serve its customers.

“We should enable Mellanox to pen-

Oshri is proud of where the company’s

etrate the new markets it aims to. We

procurement function is in terms of its

should allow the company to compete

alignment with the core business strat-

by keep suggesting short lead times,

egy, but even he himself approaches

competitive prices and best quality

each day with a means of improving.

products. Procurement is one of the

The company is looking to break into

key groups to enable such plan.”

new markets and Oshri believes that it cannot even begin to think about doing this, without this continuous improvement approach to procurement.

“Mellanox’s procurement is well w w w. m e l l a n o x . c o m

Mellanox Technologies, Ltd. Hakidma 26, Ofer Industrial Park, Yokneam, Israel.

T +972-74-723-7200 | www.mellanox.com