Managing the complex and diverse Pirelli supply chain – a sophisticated global network ranging from primary producers of raw materials to celebrity photographers – is a fast-moving role. Purchasers can be involved in anything from securing a supply of natural rubber for the company's ultra-high-performance tyres to dealing with a glamorous product launch. But in recent years purchasing has also evolved from being seen as a supporting role to one that is essential for business continuity – playing a part in risk management, sustainability and innovation.
Managing risk
Events like Covid and the Ukraine-Russia conflict seriously affected supply chains and put purchasing in the spotlight, says Ailian, Pirelli's Global Category Purchasing Manager With a mind-set focused on risk reduction and prevention and a process of best practices, Ailian and her team know how to respond to the potential impact of unpredictable events. “The first thing I do every morning is scan the news for anything that can affect our supply chain of raw materials,” she says. “Whether it's an earthquake in Turkey, a fire at one of our suppliers, hurricanes in Mexico and the US – they can all affect us. We need to have back-up plans.
For Ailian, 42, who looks after the Reinforcement & Fillers purchasing for company's 18 production plants around the world and is responsible for 45 per cent of Pirelli's raw-material spend, it is a huge responsibility, but one she relishes. “I panicked when I first faced a crisis but, to be honest, I enjoy them now,” she says with a smile. “It's immensely satisfying when our risk-mitigation plans work and we can make a real difference to the company's performance.”
Ailian started with Pirelli in her native China in 2007, beginning in purchasing for marketing and general services before moving to raw materials in 2018, and is now based in Milan. What she likes most is meeting new challenges: “I really feel every day you meet some issue, but you have the chance to learn,” she says.
Achieving greater sustainability
Purchasing also plays a key role in helping Pirelli to achieve its sustainability goals, and buyers represent a crucial contact point in collecting feedback from suppliers and responding to the challenges they share. “Good management is about encouraging suppliers to join our journey towards greater sustainability so they can become long-term partners,” adds Ailian.
Fernando, 39, a procurement manager in São Paulo, Brazil, for raw materials, indirect materials and services and energy, is particularly proud of his team's work on developing more sustainable energy supplies for Pirelli's plants in Brazil, meeting one of the company's strategic goals. “It was a pleasure to be part of a project that helps to create a new reference point for Pirelli,” he says.
“It was a pleasure to be part of a project that helps to create a new reference point for Pirelli”
“In many companies, procurement is seen as just a bureaucratic role, but at Pirelli we are a valuable bridge between internal stakeholders and suppliers,” adds Fernando, who studied international affairs at university and joined Pirelli as an intern 15 years ago. “About 80 per cent of our work is problem-solving, but we also look ahead and provide internal clients with valuable solutions. I love working in procurement because it is so dynamic.”
Supporting innovation
One of the dynamic aspects of the role is the need to be keep pace with innovation. As part of Pirelli's Open Innovation model, which supports the company's R&D department, buyers act as a link between technical areas and providers.
“We keep updated about new trends, technologies and other things the market is doing, bring this to Pirelli and build some value inside the company,” adds Fernando.
The whole process relies on cooperation between departments and individuals, and that, in turn, helps to give Pirelli a competitive advantage. Sharing new ideas and goals works. Buyers cannot simply sit at their laptops and crunch numbers. They need to innovate, interact and be sociable.
That rings true for Noemi, 26, who is based in Atlanta as a buyer for marketing, motorsport and travel for Pirelli in North America, having started out as an engineer with the company. “The job is perfect for me as I get to talk to new people every day,” she says. “We are always developing new suppliers or creating new relationships and I get to meet new people from different backgrounds all the time, whether they are photographers, car makers or database experts.”
Listening to people's needs
In many ways, the essence of successful purchasing is to create open, mutually beneficial partnerships with companies that will supply top-level goods and services at the right price. And that involves careful negotiation and the right approach.
“The essence of successful purchasing is to create open, mutually beneficial partnerships”
“It's a balancing act,” says Noemi, who studied industrial engineering in her native Mexico. “You want a good price to reach your KPI, but you also want happy suppliers. You must listen to what each side needs. There's no point getting a super-good price if the quality is lower or the supplier goes bankrupt. There should always be a win-win.”
Management graduate Annalisa Carmen, 32, a marketing purchasing manager based in Milan, who is especially proud of managing the procurement for the 2024 Pirelli Calendar project, says it is the human interaction of the role – from talking to Pirelli staff at all levels to the wide variety of suppliers – that makes it so enjoyable. “To deliver you must have emotional intelligence,” she says. “You have to really understand what people want.”
“Here, at Pirelli, it is a surprisingly strategic role that gives you a great opportunity to get a big picture view of the company and everything it does.”
