**London**: Bulgari has transformed its procurement over two decades, integrating cloud technology, AI and sustainability to support global growth within LVMH. This strategic shift enhances supplier collaboration, customer experience and ESG values, while navigating tech challenges and preserving luxury identity.
Two decades ago, procurement at Bulgari, the renowned Italian luxury jewellery house, was largely an informal, intuition-driven practice anchored in longstanding relationships and a perception that structured purchasing was unnecessary for a luxury brand. Arianna Vetrugno, now the company’s senior sourcing manager, recalls the early days when procurement was “more art than science.” At that time, there was little recognition of procurement as a strategic function, and it was often viewed as a process better suited to factories and large retailers rather than a luxury brand immersed in creativity and spontaneity.
Since then, Bulgari has undergone a profound transformation in its procurement approach. The company, which joined the LVMH Group in 2012, has expanded and professionalised its procurement team, which now supports over 57 companies worldwide, a sizable leap from an initial team of just two in 2010. The changes have been driven by a desire not only to control costs but to enhance value through stronger supplier relationships and long-term strategic thinking.
This transition gained momentum with the introduction of Ivalua, a cloud-based procurement platform that manages processes from procure-to-pay to supplier relationship management. Vetrugno views the platform not just as a technological upgrade but as a catalyst for cultural change, standardising processes and enhancing collaboration across global regions and diverse business units. With over 40,000 suppliers worldwide, Bulgari’s procurement function has focused on rationalising and streamlining supplier data through a collaborative process that values feedback and co-creation rather than imposing top-down mandates.
Vetrugno credits the predominantly female procurement team’s curiosity and dedication for fostering a culture of mutual learning and communication, which was instrumental in embedding procurement more firmly into Bulgari’s strategic operations. She describes her role not merely as a buyer but as “a communicator, a systems thinker, and a program planner” guiding people through the evolving procurement landscape.
In 2023, chief procurement officer Matteo Perondi brought a fresh perspective to Bulgari, underpinned by diverse experience in sectors such as banking, automotive, and telecommunications. His mission has been to accelerate procurement transformation while preserving Bulgari’s unique luxury identity, which demands both creativity and stringent attention to detail across the customer experience.
Perondi highlights the challenge of operating within the complex ecosystem of the LVMH Group. “Each Maison is independent—Tiffany is technically our competitor. That creates silos. But I see opportunities to build an ecosystem of shared insights, even if integration is still a hurdle,” he remarks. Despite Bulgari’s relatively modest size of 6,000 employees and over 300 boutiques, the brand’s global reach and association within the vast LVMH conglomerate add layers of complexity and opportunity.
Procurement at Bulgari extends beyond mere purchasing to crafting the overall customer experience. Perondi emphasises that “every detail matters—even the border of a marble table must be beautiful,” underscoring the importance of sourcing not just products, but “stories, emotions, moments.” This focus reflects shifting consumer preferences, particularly among millennials, who favour immersive luxury experiences over material goods. Consequently, the procurement team also supports curated events, luxury hotel launches, and immersive pop-up installations.
Upon assuming leadership, Perondi sought to reposition the Ivalua platform to align better with procurement needs beyond cost control, transforming it into a fast, user-friendly, and supplier-centric system. “Procurement had been positioned as a cost control function,” he explains, “But we’re not here to police. We’re here to partner with the business.” Simplification of ordering processes and a clear narrative shift helped engender ownership of the platform within the team.
The company is also experimenting with artificial intelligence to enhance procurement operations. Currently, AI assists internally with cleaning supplier master data and supports automated sourcing in low-touch categories. Perondi is piloting systems capable of negotiating or shortlisting suppliers but stresses that AI is a complementary tool rather than a replacement for human judgement.
Vetrugno underscores the continuing importance of human insight in procurement decisions. She points to the example of sourcing tea from a small village in Nepal for Bulgari fragrances, emphasising that values and relationships often outweigh price considerations. This ethical focus permeates Bulgari’s procurement strategy, which integrates environmental, social, and governance (ESG) metrics into supplier selection and upholds sustainable design principles throughout packaging and raw material sourcing. The company’s jewellery factory in Valenza Po embodies environmental best practices.
As Bulgari expands its luxury hotel presence in locations including Miami Beach, Los Angeles, London, and Dubai, the procurement team faces heightened demands for secure, seamless operations, especially regarding data protection for high-net-worth clients. Vetrugno states, “Cybersecurity isn’t optional. It has to be part of every decision.” Ivalua integrates risk data to identify vulnerabilities early, and procurement personnel are trained to assess suppliers on both capability and digital hygiene.
Despite technological advances, Perondi acknowledges integration challenges remain across various systems. He aspires to obtain seamless, plug-and-play solutions that minimise dependency on IT support. “What I really need is the backbone to use all this tech. I don’t want to rely on IT. I want plug-and-play tools just to work,” he notes.
Looking forward, Vetrugno describes procurement as “crafting suppliers,” emphasising collaboration to design solutions and uphold brand integrity. Perondi considers his role as an “orchestrator,” coordinating diverse talents to shape the customer experience. He envisions greater connectivity and shared insights across luxury brands within LVMH, despite current silos. “Maybe we are in silos today,” he reflects, “But tomorrow, we can connect. We can build ecosystems. We can share insights, even if some things take six months or a year to get right. That’s the roadmap.”
This ongoing evolution underscores Bulgari’s commitment to a procurement function that is strategic, innovative, and aligned with the distinct demands of luxury retail and experience.
Source: Noah Wire Services
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