When Arianna Vetrugno joined Bulgari two decades ago, procurement was more art than science. Back then the iconic Italian luxury house – known for its bold and luxurious jewellery – operated on long-standing relationships and an intuitive purchasing culture, rooted in a mindset of “We are luxury, we are rich.”
According to the lux brand’s senior sourcing manager procurement was not yet seen as a formal discipline, let alone a strategic function.
Convincing stakeholders to embrace structured processes, manage budgets, and think strategically about suppliers was no easy feat in a company where spontaneity and creativity were paramount.
“People saw procurement as something for factories and big retailers,” Vetrugno recalls. “Luxury was different—we didn’t want to follow rules.”
But Bulgari, which became part of the LVMH Group in 2012, has come a long way. Today, under the leadership of Matteo Perondi, procurement is now a dynamic, digitally driven function that balances structure with creativity.
And the challenge, according to both leaders, has been pushing boundaries while preserving the essence of luxury.
Quiet transformation
The transformation began quietly. In 2020, the procurement team numbered just two. Now, it supports over 57 companies across the globe. Early efforts focused on consolidating processes and promoting a more value-driven approach.
“It wasn’t just about saving money,” stresses Vetrugno, “but about maximising relationships and long-term value.”
This process was accelerated with the implementation of Ivalua, a procurement platform that handles everything from Procure-to-Pay (P2P) to Supplier Relationship Management (SRM).
But more than a tech upgrade, the platform acted as a vehicle for cultural change—standardising procedures while bridging the gaps between regions and aligning procurement across diverse business units.
Vetrugno doesn’t describe herself as a buyer, but rather as “a communicator, a systems thinker, and a program planner”. For her, the transformation wasn’t just about installing tools—it was about guiding people through change.
This extended to suppliers as well. With over 40,000 suppliers globally, onboarding and rationalising master data became a mammoth task. But instead of top-down mandates, Bulgari’s team took a collaborative approach, asking suppliers directly for their feedback and support in building a better system.
The overwhelmingly female procurement team, as Vetrugno notes with pride, brought curiosity and commitment to the table—contributing to a culture of co-creation and mutual learning.
Onboarding wasn’t easy. In some countries, Bulgari’s central procurement team was relatively unknown beyond the jewellery it helped source. However, according to Vetrugno, the system gave them a reason to connect, to listen, and to gradually embed procurement into Bulgari’s strategic DNA.
Complex ecosystem
When chief procurement officer Matteo Perondi joined Bulgari in 2023, he brought with him a fresh perspective shaped by roles in banking, automotive, construction, and telecoms. His mantra—”creatively transforming procurement in each organisation”—was a good fit for a brand navigating the intersection of heritage and innovation.
“The idea was to speed up our procurement transformation,” Perondi explains. “In the luxury sector, margins are higher, but so is the pressure. The speed is different, the expectations are different.”
At first glance, Bulgari’s scale might seem modest: 6,000 employees and over 300 boutiques. But as Perondi points out, “Our brand is bigger than our company.” As part of the LVMH Group, which includes 70,000 people and €85 billion in revenue, Bulgari operates within a complex ecosystem where procurement is both empowered and challenged by the Maison’s autonomy.
“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 says.
Procurement as experience
For Perondi, procurement’s role goes far beyond purchasing. “It’s not just the product—it’s the experience,” he says. “Customers should feel something unique the moment they step into a Bulgari boutique. That’s the pressure we work under. Every detail matters—even the border of a marble table must be beautiful.”
Recognising that over 70% of millennial luxury consumers prefer spending on experiences rather than material possessions,Bulgari has invested in creating immersive brand experiences.
Consequently, for the procurement team, commitment to experience means supporting a growing portfolio of curated events, luxury hotel launches, and immersive pop-ups.
“We’re not just sourcing items,” Perondi continues. “We’re sourcing stories, emotions, moments.”
That shift in purpose, he says, has changed the metrics of success. “My main goal isn’t cost savings; it’s about bringing innovation and creativity to the business—and translating that into an unforgettable customer journey.”
When Perondi arrived, Ivalua had already been implemented—but from a finance-first perspective. He noted that the platform’s focus on approvals, invoices and budget tracking made it feel more like an auditing tool than a business enabler.
“Procurement had been positioned as a cost control function,” he says. “But we’re not here to police. We’re here to partner with the business.”
The CPO reoriented the platform to reflect a procurement mindset—fast, user-friendly, and supplier-centric.
“We needed to simplify. We had an ordering process full of cost-control checks—capex vs. opex, fields and forms. But we just wanted an easier way to engage with suppliers.”
That mindset shift extended to his team. “We needed to own the platform—not see it as something imposed by the CFO,” he explains. “So, I changed the narrative. Through presentations, training, and a clear roadmap, I helped the team see it asourtool, built to support our goals.”
Perondi, a self-described “techy,” has implemented Ivalua before—along with several other competing systems. The goal now is to make the platform not only powerful, but predictive.
“The dream,” he says, “is a tool that understands me when I speak. In any language. I don’t want to type. I don’t want to fill in fields. I want to say, ‘I need this product,’ and the system responds to my voice instantly—in Korean, in Chinese, whatever the market requires.”
AI, ethics, and intelligent sourcing
Artificial intelligence is already playing a role in Bulgari’s procurement journey. Gen AI is used internally to clean and manage supplier master data, and the company is piloting tools to support automated sourcing in low-touch categories.
“We’re testing systems that can negotiate or shortlist suppliers,” Perondi says, “but AI won’t replace us. It’s a tool—not a transformation.”
AI hits the catwalk
Vetrugno echoes that sentiment. For her, procurement is still deeply human. “When we source tea from a small Nepali village for our fragrances, AI doesn’t always understand why that matters. But we do. The best supplier isn’t always the cheapest—it’s the one who reflects our values,” she says.
That ethical lens is woven throughout Bulgari’s procurement strategy. ESG metrics are part of supplier selection, and sustainable design principles are embedded in everything from packaging to raw material sourcing. The company’s Valenza Po jewellery factory is a model for environmental excellence.
As Bulgari grows its global footprint with luxury hotels in Miami Beach, Los Angeles,London and Dubai (to name a few!) its procurement function faces increasing pressure to operate securely and seamlessly.
With a high-net-worth clientele, data protection is paramount. “Cybersecurity isn’t optional,” says Vetrugno. “It has to be part of every decision.”
Ivalua now integrates risk data from multiple sources to flag vulnerabilities early, and procurement teams are trained to evaluate suppliers not only for capability, but for digital hygiene.
But according to Perondi, integration across systems remains a challenge and what he’d really like is a plug and play no code tool that doesn’t require him to reach out to the IT department.
“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 work,” he says.
Crafting the future
Both Perondi and Vetrugno share a vision of procurement not as a back-office function, but as a creative and strategic driver of value. Vetrugno likens it to “crafting suppliers”—working together to design solutions, co-create experiences, and uphold the brand’s integrity at every step.
Perondi sees himself as an “orchestrator,” bringing together diverse ideas and talents to shape the customer journey. “Today, maybe we are in silos,” 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.”
