SINCE 2020, global supply chains have been faced with exceptional political, social and economic circumstances due to the pandemic, the semiconductor shortage and the Russia-Ukraine war.

Lamborghini’s resilience ensured that the company remained extremely solid as it not only took on these challenges but also achieved record-breaking results on the sales and financial fronts. What strategy did Lamborghini adopt to ensure that production could continue uninterrupted? What approach is it taking as it prepares for the future? These were the topics discussed with Silvano Michieli, the chief procurement officer at Automobili Lamborghini, along with the exemplary cooperation with the Ukrainian supplier Leoni.

How is Lamborghini reacting to the supply chain challenges presented by the current geopolitical situation?

Michieli: “First Covid, then the issue with semiconductors, not to mention the conflict in Ukraine and protectionist policies: against this backdrop, Lamborghini has been taking risk limitation measures and securing its supply chain.

One of the main initiatives that we’ve taken here has been to forge even closer ties with some of our strategic suppliers, going from a more traditional ‘SupplierClient’ relationship with one that’s more of a partnership. At the same time, we revise our processes to a more proactive, analytical approach. This will enable us to anticipate any new problems in the industry. Now more than ever, we firmly believe that it’s essential to take a problem-solving approach in an international environment that will present more and more challenges and difficulties.”

Referring specifically to the war in Ukraine, Lamborghini is in close contact with its suppliers in the country, thanks to an emergency task force established by the Volkswagen Group that is responsible for ensuring that a steady flow of supplies continues to arrive. One of the stories that have emerged concerns the cooperation with Leoni, which produces wiring for the Huracán in the West of the country.

How are Lamborghini suppliers selected? What are the necessary indicators and other requirements?

Michieli: “We place great importance on checking the financial reliability and sustainability of our suppliers and their supply chains. While the economic side of things must be considered, at the same time we’re having to deal with the significant financial strain caused by the series of global crises that we’ve seen in recent years. As well as the margins, we now also look very closely into the solidity of our suppliers. The increasingly partnership-like nature of the relationships that we tend to establish enables them to learn about our requirements from the very beginning and optimize future supplies in terms of times and costs. In addition to financial stability, we also pay close attention to development, performance and innovations, quality and logistics in terms of delivery security.”