Lamborghini's Record Year Driven by Strategic Procurement
Lamborghini celebrated a record-breaking year in 2024.
Over the course of the 12 months, the Italian Marque's flagship Revuelto V12 hybrid high Performance Electrified Vehicle (HPEV) was the top performer, with orders extending to late 2026. Meanwhile, the Huracán is ending its production cycle with deliveries continuing through 2025, to be replaced by the Temerario – the second vehicle in the brand’s HPEV range.
The company also introduced the Urus SE plug-in hybrid, completing its transition to an entirely hybrid range and becoming the first super sports car manufacturer with a completely electrified portfolio.
For Lamborghini, which operates in 56 markets with 186 dealers globally, the record year reflects its successful approach to strategically balancing supply and demand, as well as its strong brand desirability and product residual value.
A procurement strategy driven by partnership
Lamborghini's procurement approach offers valuable insights for procurement professionals across industries. Silvano Michieli, Chief Procurement Officer at the luxury brand, leads his team with a balance of innovation, exclusivity and supplier relationships to support the iconic supercar manufacturer's record-breaking performance.
For Lamborghini, procurement is not merely a purchasing function but a strategic driver of profitability and innovation. Silvano emphasises that procurement has "a very heavy leverage in terms of influencing profitability" at the business, with significant impact on the bottom line.
"For sure the strategy at Lamborghini procurement – and my personal commitment – is to try to have as early involvement as possible," Silvano explains. "We just don't procure or purchase, we ask. Over the years we’ve also earned the appreciation and trust of other areas in the business, who involve us early in order to find solutions without compromising product performance and have the best outcomes at the best economic condition."
This collaborative approach extends to procurement offering alternatives to the R&D department to achieve the same goals with better solutions. Silvano recognises that, while Lamborghini has expertise and centres of excellence, “the evolution of the market is so fast that it's difficult to keep pace standing alone and to develop your own competence. This reality necessitates strong supplier relationships.”
Balancing exclusivity with scalability
A key challenge for Lamborghini's procurement team is maintaining the brand's renowned exclusivity while also meeting growing global demand. The company delivered nearly 10,700 cars in its record-breaking year, yet Silvano is clear that volume isn't the primary goal.
"We could produce many more cars than we actually do. The goal is to keep our exclusivity and to make sure we always offer one car less than is required," he states. "We are not fighting or running for volume. We want to create value for our customers."
This exclusivity-led proposition also ensures customers can maintain the residual value of their Lamborghinis. "Our customers are people that had great success and they know how to invest money. So for sure they love the brand and they love our car, but they don't want to lose money," Silvano notes.
Gearing up for an 'anti-fragile' procurement approach
The COVID-19 pandemic and subsequent crises prompted Lamborghini to evolve its procurement approach. Silvano references Nassim Nicholas Taleb's concept of "anti-fragile systems" – things that gain from disorder – as a framework that guides Lamborghini's procurement strategy.
"This includes anticipating shifts instead of reacting, the possibility to co-develop solutions and not purchase solutions, work on supplier solutions for potential problems that might rise up in the years to come instead of reacting, and strengthening trust with our suppliers," Silvano explains.
He describes this approach as creating "an ecosystem that develops and evolves constantly, and also gains from the ongoing shock and disruption that we have."
The wake-up call came during the Covid pandemic and the semiconductor crisis, when many realised they had taken supply chain stability for granted. While proud of how his team weathered these disruptions, Silvano recognised the need for a more sustainable approach than perpetual crisis management.
"I really understood this when we saw war in Ukraine, at which point I said 'okay, that's enough.' I realised that we needed a change, and that I also couldn’t allow our team to always operate in the complete stress of the new normal."
Going beyond a contractual agreement
For Silvano, true supplier partnerships transcend contractual agreements.
"The contract is useless if there's a major disaster or a force majeure and it has suddenly gone. At that point there's only one thing: the relationship you build up with your strategic supplier," he asserts.
This philosophy proved invaluable during carbon fibre shortages following the pandemic. With competing industries like aerospace and renewable energy commanding the bulk of global production capacity through rigid contracts with severe penalties, automotive manufacturers were at a disadvantage. Despite this, Lamborghini's long-cultivated relationships with Japanese carbon fibre producers enabled uninterrupted supply.
"Without having a written contract, we were able to not lose one single car – and we were sharing the same carbon fibre as the aircraft industries," Silvano recalls. "It's all about investing time and investing effort, but it pays back for sure."
Shifting gears to EVs
Lamborghini's transition to plug-in hybrid (PHV) and battery electric vehicles (BEV) has created unprecedented procurement challenges. The shift required sourcing components and technologies that often didn't exist in market-ready forms.
"Due to the BEV and PHV transition, most of the OEMs are looking for range. They're not looking for power. At Lamborghini, especially for our super sports cars, we need to work on solutions that are also focused on power," Silvano explains.
This required developing new supplier partners for vehicle electrification. "We had to bring on board a new development partner,” says Silvano. “We had to bring on and develop suppliers in the market nearly from scratch in order to be able to produce batteries for us."
The technical constraints of Lamborghini's designs compounded these challenges. "Our car is so low that you don't have space. Therefore you need to develop a cutting-edge battery pack solution in order to guarantee maximum performance within the limited space available.”
Silvano reflects that this journey began in 2018 and represented a long-term investment that is now paying dividends for new models. "It was an amazing experience. I can honestly say that sometimes it was a challenge, but at the end of the day I was fully satisfied and our team are thrilled about what they have achieved."
Building partnership highways across the world
Lamborghini's procurement department operates within a model line structure, with dedicated teams supporting each vehicle line (Revuelto, Temerario and Urus). This integrated approach ensures procurement is part of cross-functional project teams that Silvano says are "coordinated like an orchestra”.
The procurement team itself is notably diverse, with 17 nationalities represented and an average age of 34. "It's like a melting pot, which is challenging but it helps a lot as well,” he shares. “This mix really creates a dynamic and a team with the will to change things, and to challenge things – they challenge me on a daily basis," Silvano shares.
This international team helps manage Lamborghini's global supply chain. While production remains 100% based in Italy's Motor Valley and the main supply chain is European, Silvano emphasises that geographical location is secondary to finding the best solutions.
"Whether the state-of-the-art technology comes from Japan, Vietnam or the US, all I care about is that I'm offering the best of excellence to our customers," he states. "When we need to find something that is the best, wherever it is, we chase and we get it. And if it's not ready for automotive use, we qualify it to be ready for automotive use."
On the road for sustainability
Sustainability remains a priority for Lamborghini's procurement team despite changing market trends. The company is working with suppliers on numerous initiatives, including recycled carbon fibre, sustainable tyre materials and recycled aluminium.
"I know that lately the topic of sustainability is less in vogue compared to maybe one or two years ago for different reasons. But again, as a company we believe that we have a social responsibility and need to leave a good legacy for future generations," Silvano explains. "We don't move based on politics, we move on the values we trust and this is the reason why we're not giving up on that."
This commitment to innovation provides opportunities for suppliers whose ideas might be overlooked by mainstream manufacturers. "The typical question I have when I meet with a supplier is 'what kind of innovation are you not able to implement because other OEMs tell you they don’t take the risk?’,” says Silvano.
Going against this approach, Lamborghini's varying production scales and dedication to exclusive, luxury vehicles — from one-off specials and limited series, through to higher-volume models — creates a perfect testing ground for innovations that might be too risky for mass-market manufacturers.
As Silvano concludes: "There's a real cooperation approach. This is a key aspect between our departments in order to achieve results." By applying these principles, procurement teams can transform from cost centres to strategic partners driving both innovation and profitability
To read the full article in the magazine, click HERE.
Explore the latest edition of Procurement Magazine and be part of the conversation at our global conference series, Procurement & Supply Chain LIVE.
Discover all our upcoming events and secure your tickets today.
Procurement Magazine is a BizClik brand