P

FOR INTERNAL USE ONLY

Global
Procurement
Policy

Version 1.1
Valid from 30 November 2021

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
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Table of Content
1. GLOSSARY ................................................................................................................ 1
2. INTRODUCTION ........................................................................................................ 2
2.1 Preamble .......................................................................................................................................... 2
2.2 Purpose ............................................................................................................................................ 2
2.3 Target group .................................................................................................................................... 2
2.4 Global procurement mission ........................................................................................................... 2
2.5 Scope and exceptions ...................................................................................................................... 2
2.6 Guiding principles............................................................................................................................ 3
3. PROCESS TAXONOMY .............................................................................................. 4
3.1 Supplier management ..................................................................................................................... 4
3.1.1 Supplier onboarding .................................................................................................................... 4
3.1.2 Supplier evaluation & development ............................................................................................ 5
3.1.3 Supplier offboarding .................................................................................................................... 5
3.2 The Purchase-to-Pay process (P2P) .................................................................................................. 5
3.2.1 Raising the requirement (Purchase Requisition / PR) ................................................................. 5
3.2.2 Cost object approval .................................................................................................................... 5
3.2.3 Procurement involvement and approval ..................................................................................... 6
3.2.4 Sending the order (Purchase order / PO) .................................................................................... 6
3.2.5 Invoicing ....................................................................................................................................... 6
3.3 The Source-to-Contract process (S2C) .............................................................................................. 6
3.3.1 Thresholds and formal requirements .......................................................................................... 7
3.3.2 Demand specification and potential other checks ...................................................................... 7
3.3.3 Bidding procedure........................................................................................................................ 8
3.3.4 Evaluation, negotiation, and supplier selection.......................................................................... 8
3.3.5 Contracting ................................................................................................................................... 9
4. PROCUREMENT ORGANIZATION .............................................................................. 9
4.1 Organization structures and committees ........................................................................................ 9
4.2 Procurement models........................................................................................................................ 9
5. SAVINGS TRACKING ................................................................................................11
6. APPROVAL AND REVISION INFORMATION .............................................................12

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November 1
2021
1. Glossary Request for Information (RFI): Process (and
document) used to collect written information about
the capabilities and the portfolio of various
Business Department: Department within the
suppliers, esp. used if service/ product specifications
company that owns the operational relationship
and/or the supplier landscape are unclear. This
with the supplier and/or owns the budget for the
request is not binding on either the supplier or the
demand.
Company.
Request for Proposal (RFP): Process (and document)
Category: The classification of goods and service
that solicits suppliers for comprehensive bids for a
based on their characteristics/specifications and not
good or service required by the Company
their purpose.

Request for Quotation (RFQ): Process (and document)

Company: One of Delivery Hero Group´s entities.
that solicits suppliers for price bids for a rather
simple good or service required by the Company.
Contract: Agreement concluded with suppliers
outside the Company as a contractual framework for
Source to Contract (S2C): Entire process from Demand
the acquisition of services or goods by DH SE.
Management, to Tendering, Negotiation and
Contracting a Supplier Provider of non-groceries
Delivery Hero Group (DH): Delivery Hero SE and all its
goods and services for the Company.
subsidiaries and affiliated companies.

Supplier: Provider of non-grocery goods and services

Data Protection Agreement (DPA): Compulsory
for the Company.
agreement when personal data between parties is
shared.

Global Procurement Organization (GPO): All Delivery

Hero teams and individuals that conduct or have a
substantial part in procurement activities as defined
in this policy.

Non-disclosure agreement (NDA): Agreement with

the purpose to ensure that any confidential
information exchanged between parties is kept
confidential, used by the receiving party for a specific
authorized purpose, and not shared with any other
third party.

Purchase Order (PO): Official offer issued by the

Company, in the best case generated automatically
via an e procurement tool, to a supplier to
supply or provide a certain quantity of goods or
services at or by a certain point in time to an agreed
price.

Purchase Requisition (PR): Indicates a request to

Procurement to procure goods or services in a certain
quantity on a specific date. It also contains additional
information with regards to cost center and
authorization.

Purchase to Pay (P2P): Entire process from purchase

request to payment. The process can be split into
Purchase-to-Order (P2O) and Invoice-to-Pay (I2P).

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
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2. Introduction
2.1 Preamble
This Global Procurement Policy is applicable to
Delivery Hero SE, all its subsidiaries and affiliated
companies (hereafter “Delivery Hero”, “Delivery
Hero Entities” or “Delivery Hero Group”). It replaces
in its entirety any Procurement policies, which are
currently in effect in Delivery Hero entities, which fall
under the scope of this Global Procurement Policy to
the extent that the same subject matter is concerned.
This policy is complemented by local appendixes that
reflect the local specifics of Delivery Hero entities
regarding all regulations and processes described in
this policy:
https://drive.google.com/drive/folders/1eowvqlUZi
GUvCLg3l8G0PH-yUt13nj2c?usp=sharing
All Procurement related transactions are required to
comply with this policy. All employees with direct
reports are responsible for ensuring that the content
of the policy is understood and followed. Any willing
deviation from this policy may result in a request not
being processed and/or disciplinary action.
This policy relates to all strategic, tactical, and
operative procurement activities and serves as an
overarching guideline for global standards for
Delivery Hero. For questions related to this policy
please refer to your responsible Procurement or GRC
representative.
2.2 Purpose
The Procurement function aligns purchasing
activities globally and manages the purchasing
activities of the Company on strategic, tactical, and
operative levels, e.g., global demand bundling,
market intelligence, supplier evaluation, tendering,
ordering. Furthermore, Procurement aligns globally
which procurement model to apply to each demand,
i.e., which of the procurement activities to be
handled globally, regionally, and locally.
If no dedicated Procurement role or function
(hereafter “Procurement”) is established yet, the
local managing director is responsible to appoint a
person that represents Procurement and takes over
the ownership and responsibility for all
procurement-related tasks.
DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
Procurement regulations ensure that Delivery Hero
gets the best possible quality/price mix of necessary
goods and services at the desired time in a compliant
manner. This policy outlines the minimum
requirements for compliant processes across the
Delivery Hero Group. Country-specific
responsibilities and thresholds are governed by the
respective appendices.
2.3 Target group
This policy applies to all employees (permanent and
temporary) of Delivery Hero, suppliers, contractors,
and others who may be procuring or providing goods
and services to the Company.
2.4 Global procurement mission
Procurement's mission is to create value-add by
connecting people, delivering business insight and
foresight, ensuring compliance, supporting the
business with efficient purchasing processes, and
delivering commercially beneficial results.
Procurement is the function with the most interfaces
in the global Delivery Hero network, both internally
and externally, and thus, Procurement is best
positioned to link demand and supply.
Global harmonization and standardization are
necessary to leverage the scale and scope of Delivery
Hero's global activities. Procurement is building and
managing sustainable relationships with the
business functions and suppliers alike, overseeing
the contract landscape, and negotiating commercial
terms in the best interest of Delivery Hero.
2.5 Scope and exceptions
This policy covers all commercial activities for all non-
groceries and non-food categories including
tendering, negotiation, contracting (incl. renewals),
supplier lifecycle management, and ordering.
In alignment with the global and (if applicable) the
respective regional procurement leads a so-called
“delegated procurement” model can be
implemented which allows dedicated colleagues
from the business to perform procurement activities
for certain (sub) categories in line with the content of
this policy.
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The policy contains minimum requirements.
Depending on the case, process steps can be
designed to be more extensive or supplementary.
The following cases are not covered by this policy.
The usage of the deviation form is not required.
• Cases where Company or Delivery Hero
policies or guidelines exist that are more
specific (e.g., Group Policy Business Travel
for Travel Expenses and Reimbursement,
Team Event Policy, reimbursement of
educational budget expenses)
• Agreements not related to categories in
scope (e.g., agreements with partner
restaurants, credit and loan agreements,
purchase of groceries and food ingredients
for Dmarts and Kitchens)
• Acquisition or sale of shares in companies
(e.g., mergers and acquisitions, disposals of
investments)
• Regulatory or statutory amounts such as
payroll, tax payments, fees, duties, or
deposit payments
• Intercompany charges (IC)
• Donations and sponsorships
• Mandatory membership in an association for
business purposes
• Engagement of individual riders, runners,
and hoppers
• Expenses of supervisory board members
Furthermore, in the following cases, a (partial)
deviation from this policy is applicable as described
below. The usage of the deviation form is not
required:
• The engagement of suppliers required to
avert immediate damage (e.g., repairs for a
burst water pipe, major consequential
damage, or disruption of operational
business processes) can happen outside of
this policy. However, in these cases, the
requester is required to inform Procurement
and to work together with Procurement and
Legal on an agreement (which potentially
can be a PO only) retrospectively. Best case
in cooperation with the respective business
units an appropriate supplier base is
developed upfront to be used in these cases.
• If certain products or services such as IT
hardware or office supplies cannot be
ordered by the individual employees of the
Company, suppliers can be requested from
DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
either the IT helpdesk team or the office
management team. In these cases, these
teams are acting as requesters and will need
to follow this policy in its entirety.
• If the Company has implemented a
systematic process for IT software requests
(Software Asset Management), these
requests, also for already existing software,
must be raised via the relevant tool. The
internal IT is the first point of contact for all
these requests and will involve Procurement
if applicable.
• For expenses paid with direct debit and
standing orders, and if DH is not receiving an
invoice for these expenses, the creation of a
PR is not required. The Source-to-Contract
process is not impacted and needs to be
followed.
• Expenses for electricity, water and gas shall
be handled in alignment with the local
public regulations so that the process as well
as the involvement of procurement for
sourcing, contracting, and ordering might be
deviating from this policy.
• The sourcing of D-mart and kitchen locations
does not necessarily require more than one
quotation (and respective price comparison)
as defined in the local Sourcing Matrix (see
local annex). However, benchmarking to the
market is recommended.
• The engagement of freelancers, defined as
individuals contracted to work for DH on a
specific project or amount of time, can
deviate from the policy and, if existing for
the Company, the freelancer guideline
applies. All other cases where the invoicing
entity is a legal commercial entity need to
follow this policy and its principles.
Additional areas only can be excluded from this
policy partly or entirely by receiving a written
approval by the lead of Global Procurement of the
Delivery Hero SE as well as the lead of the respective
Regional Procurement team.
2.6 Guiding principles
• Deliver procurement as a (value-adding)
service: Procurement delivers a compelling
value, e.g., savings, and an amazing service
experience enabled by best-in-class
processes and tools.
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 • Build on a global scale and scope:
Procurement provides global spend
transparency and operates cost-efficiently.
• Strive for harmonization instead of
standardization: Procurement enables a
global way of working while respecting local
specifics.
• Offer efficient processes and easy-to-use
tools: Procurement ensures collaboration
with Procurement is as easy as possible.
• Adhere to the highest legal and ethical
standards: Procurement remains compliant
with legislative and regulatory
requirements and carries out the day-to-day
business with integrity and accountability to
also mitigate corruption-, bribery, and
financial crime risks.
• Maintain accurate records: Procurement
provides transparency over the Delivery
Hero spend, i.e., payments to suppliers, for
goods and services in scope of this policy.
• Manage risk prudently: Together with Legal,
Procurement reviews supplier agreements
carefully and follows internal procedures to
make sure commercial, legal, data security,
and business risks are clearly identified,
understood, and managed.
• Ensure close, positive, and sustainable
relationships: Procurement establishes a
great collaboration with the suppliers which
fosters a productive climate for negotiation
and daily interaction.
3. Process taxonomy
Procurement processes can be classified as strategic,
tactical, or operational processes. For detailed
process descriptions please refer to the process
taxonomy documented in Signavio.
Strategic: Mainly Category Management and
Supplier Portfolio & Relationship Management:
Covering activities such as the definition of category
strategies based on internal and external data
analyses, the definition of preferred suppliers, and
the development of suppliers.
Tactical: Mainly Source-to-Contract (S2C): Covering
activities such as demand specification, tendering,
negotiation, and contracting.
Operational: Mainly Purchase-to-Order (P2O) and
Invoice-to-Pay (I2P): Covering activities such as
DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
requesting, approving, ordering, invoicing, and
paying.
3.1 Supplier management
3.1.1 Supplier onboarding
Every new supplier has to be onboarded before
contracts can be signed or purchase orders can be
sent out. Thereby, the Supplier Code of Conduct and
the Conflict-of-Interest policy are required to be
taken into consideration, especially when it is
intended to mandate a state-owned supplier.
Supplier Onboarding consists of Supplier
Qualification and Supplier Registration.
Supplier Qualification is the process of verifying that
the supplier is operating in line with Company’s
Supplier Code of Conduct including but not limited to
financial, reputational, and environmental risks. The
criteria for which of the Company’s suppliers need to
be qualified need to be documented and approved
by the responsible regional heads of Procurement
and GRC respectively. A screening tool should be
used to perform the risk assessment. The tool should
facilitate not only the initial assessment but also the
ongoing screening of suppliers to signal any
potential risk that might arise at a later stage.
Whenever possible, the screening tool should be
seamlessly integrated with the procurement-owned
supplier management tool in place.
Supplier Registration means the process of gathering
supplier information such as certain company data
and bank account data, verifying this information,
and creating the supplier in the ERP system. The
supplier data will be verified via a four-eyes principle
by the Procurement and Finance departments. The
supplier master data can only be created and
changed by the Finance department, or if a
procurement-owned supplier management tool is in
place, the data is maintained and owned by the
supplier. Appropriate proof for the supplier data is
required and needs to be provided by the supplier.
Procurement is responsible for the onboarding
process as well as certain specific activities such as
performing risk assessments or facilitating the
discussion of assessment results between suppliers,
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the requester and the respective subject matter
experts within the company. As part of its regular
collaboration and interaction with the supplier, it is
the responsibility of the business function to create
awareness on supplier side for the Company’s
policies, to monitor supplier’s adherence with these
policies as well as to align actions with the supplier
to mitigate identified risks and to control their
implementation.
3.1.2 Supplier evaluation &
development
Procurement and the respective business function
are responsible for an active supplier management
that targets a consolidated and sustainable supplier
base. Procurement aims to evaluate strategic
suppliers with the respective business function
regularly, and to define appropriate actions to lift the
identified improvement potential. The development
of certain suppliers is highly dependent on the
applicable category strategy.
3.1.3 Supplier offboarding
All suppliers shall ensure that they conduct business
according to Delivery Hero's Supplier Code of
Conduct and to a signed agreement or alternatively
the Company’s Terms & Conditions. Delivery Hero
reserves the right to stop working with a supplier and
suspend or remove a supplier from the list of
approved suppliers for a breach of the Supplier Code
of Conduct, a signed agreement, or the applicable
Terms & Conditions.
The process of supplier offboarding refers to the
deactivation of a supplier from the company's
administrative and financial records. For every
offboarding case Procurement and Legal are required
to ensure all relevant parties such as GDPR, Data
Security, and Finance are involved. Furthermore,
Procurement is responsible to document each
offboarding case.
The supplier offboarding checklist includes, but is not
limited to the following:
• The supplier should no longer have access to
the physical property or IT systems of the
Company
• The supplier is required to destroy all data
(as regulated in the DPA)
• The supplier should not have any rights and
access to DH applications
DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
• Procurement or the business function notify
Finance to stop payments
• The supplier profile status in the ERP system
should be updated accordingly
3.2 The Purchase-to-Pay process
(P2P)
The exact sequence of the P2P process depends on
the buying channel (e.g. catalog order or free text
order) and the net order value of the product or
service to be procured. In principle, it consists of four
major sub-processes that need to be run through, one
after another.
3.2.1 Raising the requirement
(Purchase Requisition / PR)
Any employee who requires a product or service
("requester") needs to send the request via the
available e-procurement tool to Procurement, or via
e-mail if no tool is existing. If this is done via a
system, the following sub-processes are system-
supported. Certain goods or services might be able to
be requested only by a dedicated business function
(e.g., Hardware equipment might only be purchased
by the IT department). In such a case, a
representative of this function acts as a requester and
needs to follow this policy.
3.2.2 Cost object approval
Afterward raising the requirement, the request is
sent for a cost object approval to obtain and
document budget approval. In general, cost object
approvals need to be provided by the respective
budget owner (which is usually the cost center
owner), potentially from representatives from
subsequent hierarchy levels up to the CEO of the
Company and potentially by a Finance
representative. The request runs automatically
through the right approval chain if the process is
supported by an e-procurement tool. Otherwise, the
requester must 1) obtain approval in writing from the
respective approver(s) outside of the tool, and 2)
document the approval to ensure traceability.
The cost object approval is based on the net order
value of the product or service to be procured. If the
order value is not known in advance, the approval
level is determined based on the requester’s
estimate, in consultation with Procurement and the
cost center owner if necessary. If the final order
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amount is higher than 10% of the request’s initial
value, the cost object approval shall be repeated.
The specific local approval matrices are defined in the
respective local appendix. Local thresholds should be
commensurate with local procurement expenditures
and processes.
All local thresholds and changes must be approved
by the regional Procurement lead, the global
Procurement lead (DH SE), the local Finance lead, and
the regional Compliance or GRC lead. Changes need
to be documented and filed along with this policy.
3.2.3 Procurement involvement
and approval
To ensure compliant and optimized spending,
Procurement involvement in purchases above a
certain threshold is mandatory. The procurement
involvement results in a procurement approval which
usually is required before an order is sent to a
supplier. Preferably, this is supported by an e-
procurement tool. Procurement may send a purchase
request back to the requester if the details are
missing or not correct or the policy has not been
followed.
If the Procurement involvement happens before a
request is triggered in the e-procurement tool and
results in a framework contract, the Procurement
approval must only be obtained as soon as the
contract is applied (e.g., order form is issued).
The approval chain depends on the net order value of
the product or service to be procured and is regulated
on a local or regional level in the local or regional
annex.
3.2.4 Sending the order (Purchase
order / PO)
After the purchase request is fully approved, the PR
will turn into a purchase order (PO). It will be sent to
the supplier automatically if an e-procurement tool is
in place. If an e-procurement tool is not implemented
yet, the purchase order must be sent by Procurement
or the requester to the supplier via email. In any case,
the purchase orders need to be numbered serially
and documented. Payment terms follow at least the
minimum requirement outlined in the locally
applicable Terms & Conditions. Invoicing procedures
follow the local process and requirements. The
DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
preferred payment method is payment via invoice,
other payment methods such as virtual credit card
payments are exceptional cases and require guidance
from Procurement. Generally, every invoice has to
contain a PO number in order to get paid.
3.2.5 Invoicing
It is mandatory that every invoice contains the
Purchase Order number. Otherwise, the invoice will
get declined and not be paid. A Purchase Order
always needs to be raised prior to a supplier
invoicing us. All invoices have to be sent
electronically to the respective email address of the
Company (as mentioned in the local appendix) or via
the Ariba network.
If a supplier accepts credit card payments only,
Procurement can issue a virtual credit card (if
available for the Company already) upon request via
the e-procurement tool if existing.
3.3 The Source-to-Contract process
(S2C)
The S2C process describes the activities from the
clarification of an actual need and the definition of
its specifications, through requesting quotations and
negotiating the offers until selecting a supplier and
signing a contract.
Deviations from the S2C process described in this
policy need to be documented and approved by the
cost center owner, and the responsible Procurement
representative. If no system-supported solution is
existing, the general Deviation form in Annex 1 of
this document is to be used.
In principle, the responsibilities along the S2C
process are split as follows:
• Entry point (Demand communication): As
soon as a need is identified the requester
needs to reach out to Procurement through
the applicable channel. It is the requester’s
responsibility to inform Procurement
already at that stage about any data
protection requirements to allow
Procurement to involve the Data Protection
Office and the Information Security team as
early as possible.
• Specifications (e.g., product characteristics,
demand, budget): The requester is
responsible to define and communicate the
required product/service specifications,
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 Procurement can only support properly
when requirements are clearly defined. If
certain requirements are not met, e.g., a
clear budget does not exist, Procurement
will still support and work together with the
business to define the needed information.
Overall Procurement should guide this
process to avoid unnecessary loops at later
stages.
• Market Assessment / Supplier identification:
It is Procurement’s responsibility to provide
market insight and foresight. The
business/requester is invited to support the
process and bring in relevant market and
supplier information.
• RFx document creation, supplier
communication, and offer evaluation:
Procurement leads the communication with
the supplier and ensures all needed
documents and templates are available and
shared with either the supplier or the
internal stakeholders.
• Negotiation: Procurement prepares,
facilitates, and follows up on required
negotiation talks. Depending on the
negotiation strategy different DH functions
or individuals will be asked to support in
addition to the requester.
• Contracting: Procurement is coordinating
the contract review process in close
collaboration with Legal that is acting as
gatekeeper and providing solutions to
mitigate identified contractual risks
3.3.1 Thresholds and formal
requirements
The responsibilities and major requirements of the
sourcing process are based on the net order value of
the product or service to be procured. Every country
is obligated to define a threshold that requires a
formal RFP/RFQ process to follow. These thresholds
and requirements are deviating on a country level
and thus, they are governed by the applicable local
annex.
If a recurring product or service is renewed the first
time and the contract duration does not exceed a
total of four years, the contract can be renewed
1
Also known as a Confidentiality Agreement,
Confidential Disclosure Agreement, Proprietary
Information Agreement or Secrecy Agreement.
DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
without obtaining comparable offers independent of
the net value of the request. However, Procurement
needs to be involved and advises on the steps to take.
3.3.2 Demand specification and
potential other checks
Preferably, Procurement is part of the business
function’s annual budgeting process to identify
upcoming needs as early as possible. The general
underlying requirement to start the process,
however, is an existing cost object approval. As a
next step, the requested good or service is to be
described by the requester in such a clear and
comprehensive manner that all potential suppliers
can, at best, submit a comparable and corresponding
bid without asking for further information.
Based on the submitted request and additional
requested information, Procurement will decide (A)
if a Non-Disclosure-Agreement (NDA) needs to be
concluded, (B) which compliance-related functions
need to be involved and (C) if it is an IT
(sub)outsourcing agreement.
A) Non-Disclosure-Agreements (NDA)
Based on the local collaboration model between
Legal and Procurement one of the two departments
verifies if a NDA is needed, takes care of its
conclusion and involves Legal if required. The
purpose of an NDA1 is to ensure that any confidential
information exchanged between the parties is: (i)
kept confidential; (ii) used by the receiving party for
a specific authorized purpose (e.g., analyzing the
potential conclusion of an agreement for the
purchase of certain services); and (iii) not shared with
any other third party.
Confidential information includes but it is not limited
to: information concerning intellectual property and
proprietary rights of any kind, trade secrets, know-
how, non-public information about the Company, its
business (such as business strategy, business
projections, financial information), markets,
products, customers, contractors and business
partners, technology, etc.
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The Company has two NDA templates: (i) mutual
NDA: it should be used when both parties or only the
supplier will exchange confidential information; and
(ii) one sided NDA: it shall be used when the
Company is the only one disclosing confidential
information. The Company’s template NDA should be
used.
B) Security Compliance Check (IT security and DPO)
A security review is required if a supplier is
processing, storing, and/or transmitting private or
sensitive data as defined in the Information
Classification Policy. In these cases, the Company no
longer controls the data and DHs third party security
requirements apply. In addition, a security review is
needed for all IT and software products and services.
The transfer of personal data from customers,
employees, or suppliers to third parties who are
processing personal data and other Company related
data received not exclusively for the Company’s
purpose and in accordance with the Company’s
instructions but for their own purpose, requires the
prior written approval of Legal and the Data
Protection officer (DPO). If a local DPO is available,
please contact the local Data Protection Coordinator
(DPC) for approval. They will involve the global DPO
if needed. If a local DPO is not available Procurement,
or the requester in alignment with Procurement, is
required to involve the global DPO directly. If data of
customers from Europe are to be processed by third
parties, a Data Processing Agreement must be
signed. For the Software category, an IT Security
Check is always required.
C) IT (sub) outsourcing
Requirements for contracting may be added as
defined by the financial regulatory authorities in case
the service provided is deemed as qualified to be
relevant to the fintech business vertical.
3.3.3 Bidding procedure
A supplier search must be carried out and
documented. If relevant information is not publicly
available, a formal "Request for Information" (RFI)
should be sent to potential suppliers to answer
relevant questions.
The requester may suggest potential suppliers to be
included in a call for quotations. Procurement may
DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
refuse to consider a supplier if there are valid reasons
for doing so (e.g., repeated poor performance, lack
of cooperation, etc.). The result of this process step is
a list of all suppliers involved in the call for tenders.
The “Request for Proposal/ Request for Quotation”
(RFP/ RFQ) is a request to the selected suppliers to
submit a bid. It contains all relevant information
required by the suppliers to submit a valid offer.
These include, but are not limited to, administrative
instructions, demand specifications, price sheet, the
Supplier Code of Conduct, and purchasing terms and
conditions. If necessary, it can also make good
commercial sense to carry out a different type of
sourcing event such as an auction. This must be
decided on a case-by-case basis by Procurement.
Sourcing events are preferably run via an e-
procurement tool (if existing).
3.3.4 Evaluation, negotiation, and
supplier selection
All submitted quotes shall be subject to an objective
comparison. Before entering into commercial
negotiations, it might be useful to decide on a
supplier shortlist. Therefore, a first comparison
should be carried out. For the commercial evaluation,
a total price overview with all suppliers needs to be
created and documented. Subsequently,
negotiations are conducted under the leadership of
the responsible person from Procurement.
Before making a final supplier decision, qualitative
and quantitative criteria should be defined and
thereafter evaluated by the responsible person from
Procurement in close cooperation with the requester.
The procurement involvement is considered
mandatory in this process step. The following criteria
form a non-exhaustive list of criteria that could be
evaluated:
• General approach, capabilities, and
references/use cases
• Commercials
• Project team and implementation
timeline/roadmap
• Ethics and sustainability
• Innovation capability
Taking all factors into account, Procurement
proposes to award the contract to the best-evaluated
supplier. The requester makes the final decision
based on the evaluation results and Procurement
proposal. The comparison, decision-making criteria,
8
and the final decision are documented and centrally
filed by Procurement.
Usually, Delivery Hero and the Company do not allow
any usage of their brand or logo and mention them
as a reference customer. However, the Company
might consider making an exception and grant the
possibility to selected, strategic partners. Every
usage must be aligned and approved between and by
Procurement, Legal and Corporate Communications.
The supplier request should be understood as a
valuable negotiation lever. In cases where a supplier
uses above without granted permission, the
product/service owner should inform the supplier to
stop and potentially consider the termination of the
agreement if the supplier repeatedly does not
comply with the request.
3.3.5 Contracting
As a last step of the S2C process, the contract review
takes place. It always must be initiated by
Procurement. Any necessary legal checks must be
carried out by the responsible Legal department
(preferable local or regional Legal department if in
place) before the contract is signed.
In the beginning of the contracting process,
Procurement will verify if the contracting document
requires certain formal approvals. Procurement will
also check if it is a related party transaction and
determine what contracting document shall be used.
We strive for the usage of POs whenever possible to
ensure lean processes and optimal resources usage.
In case of doubt this can be advised by either
Procurement or Legal. However, there are several
(DH internal) conditions that require the conclusion
of an agreement before a fully approved PO is sent
out to the business partner. These conditions are
mutually agreed by the Company’s responsible Legal
and Procurement teams.
After the finalization of the agreement, it can be
signed according to the respectively valid signing
rules. The latest version can be requested from your
local Legal department. Usually, Legal will initiate
the process and obtain the required signatures. In
certain cases, this will be done by Procurement
directly.
All agreements must be centrally stored, preferably
in the global contract management system to enable
transparency across all markets.
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In principle, prior to the renewal of an expiring
contract or in the case of automatically renewed
contracts, both the terms and the scope (e.g., service
level) must be critically reviewed. The maximum
duration of the contract should not exceed three
years. In exceptional cases (e.g., for business-critical
software) the duration can be extended up to five
years.
Employees are not allowed to subscribe to any
service or product or sign any commercial agreement
without authorization. Only authorized individuals
within DH can sign and commit to Delivery Hero’s
legal and financial obligations unless local and
regional signing rules apply.
If the Material Decision Policy applies for the
Company, an approval from DHSE is required before
a contract can be signed.
4. Procurement organization
4.1 Organization structures and
committees
The Global Procurement Organization (GPO) has
been set up to leverage scale and scope of
procurement for the Delivery Hero Group. A central
team provides strategic direction and guidance and
collaborates with the decentral procurement teams
to ensure and improve efficient and effective
procurement operations.
Different meeting bodies, on global and regional
scale, foster collaboration, and alignment both
globally/locally and between business and
procurement functions. These meetings will take
place on various geographical and hierarchical levels
to align on topics such as Global governance &
compliance, Procurement models, Organizational
development & capacity planning, or Skill
development.
4.2 Procurement models
Procurement models define the activity split along
the process taxonomy between global, regional and
local procurement on a (sub-)category level.
Currently, we work in accordance with four
predominant procurement models:
9
I. Centralized
IIa. Center-led sourcing
IIb. Center-led strategy
III. Regional/ Local

Each (sub-)category can be assigned to one of the

models to ensure a clear understanding of roles &
responsibilities as well as related activities split. Over
time, a commodity may change to a different
procurement model.

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5. Savings Tracking business functions to assess needed
requirements
4. Need – Procurement can challenge
Procurement aims for a globally consistent savings
general demand in selected cases
tracking process which is following a certain set of
rules and procedures. Detailed explanations can be
The procurement success, in the form of savings, is
found in the Savings Tracking Methodology guide.
measured in two distinct categories: Procurement
The savings tracking and global reporting process
result (hard savings) and Procurement performance
starts with the roll-out of GPO in the respective
(soft savings). The following figure provides an
Company.
overview on the basics for their calculation.
Degrees of implementation (identified, quantified,
Savings are generated as a result of sourcing projects
decided, implemented, realized) describe the
through joint effort of procurement and the
(un)certainty level of savings. They are not only used
respective business function(s). Savings are based on
to put the provided numbers into perspective but
the following four parameters with descending level
also to manage the savings pipeline. Procurement
of influence from Procurement:
will track savings up to the "implemented" status
1. Price – Procurement can support all
which is achieved with contract signature.
cases to save costs, e.g., via negotiation
All decentral procurement teams are obliged to
or tendering support
provide their savings to the central procurement
2. Quantity – Procurement can assess and
team via the savings tracking tool. This enables
manage internal demand volumes
central procurement to consolidate savings achieved
according to the business needs
by the Global Procurement Organization and to
3. Specifications – Having strong market
create and share a regular savings report.
expertise Procurement can help

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November 11
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6. Approval and Revision Information

Contact Details Signature

Prepared by David Beyer

Policy Owner Vice President Global
Procurement

Verified by central GRC Babak Mohtachemi

Senior Director GRC &
PMO

Primoz Novak
Director Compliance
Management

Approved by the Emmanuel Thomassin

Management Board CFO

Pieter-Jan Vandepitte
COO

Niklas Östberg
CEO

Policy Governance Framework

Type L1_DP

Revision period 1 year

Conflict of Interest policy
Treasury policy
Supplier Code of Conduct
Related documents Material Decision policy
Procedure on Contract Review
Efficiency
Vendor Security Requirements

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November
2021
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 Information Classification Policy

Confidentiality [For Internal Use Only]

Revision Log

Version Date of Release Description of Changes

1.0 2020-01-01 First Release

1.1 2021-11-30 Second Release:

Global Procurement Policy
is covered in one main
document with country-
specific or region-specific
annex

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November 13
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Annex 1:
Template approval form for deviations from the Global Procurement
Policy

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November 14
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Approval form for deviations from the Global Procurement Policy

This form is required for the documentation of a deviation from the Global Procurement
Policy. In case of an intended deviation the requester has to complete this form and send it
for approval. The requester is responsible to check if the Company has an alternative
system-supported workflow in place. Other existing relevant documents related to the
potential deviation case need to be handed in by the requester together with the form.

Name of the requestor

Applicable cost center # for the purchase

Cost center owner

(Purchase requisition) PR number

In case a PR was not created, please raise a PR in the available e-procurement tool

Description and scope of the item/service procured

e.g., Chair for office renovation, Legal consultant to support with legal activities, etc.

Total order value

e.g., purchase price; giving the total net amount per month/year (e.g., rental agreement, leasing contract,
etc.) for permanent contracts, and total net amount per month/ hour for service fees, by means of an
estimate if necessary

Order currency

Procurement category

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November 1
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Category of the service/product purchased

Supplier name

Are you aware of the Global Procurement Policy?

Yes
No

Have 3 written quotations from different suppliers been obtained?

Yes
No

Has a Request for Proposal (RfP) been carried out?

Yes
No

Has the Request for Proposal (RfP) been documented?

Yes
No

Has the supplier already been awarded / contracted?

Yes
No

Responsible contact at Procurement [Optional]

Reason(s) for deviating from the Global Procurement Policy

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November 2
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Annex 2:
Delivery Hero SE specific annex to the Global Procurement Policy

DELIVERY HERO - Global Procurement Policy – Version 1.1 – For Internal Use Only - Valid from 30 November 3
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Delivery Hero SE (“Company”) specific annex to the Global Procurement Policy

This document is an addendum to the Global Procurement Policy (2nd release) and is regulating the specific
thresholds and requirements for the Company in regard to all procurement-related processes as described in the
policy.

1. Approval structure
There are two main approval steps to be considered for every purchase request: Cost object approval and
Procurement approval.
The approval chain is defined by the type and net value of the purchase request.

a. Cost Object approval

Every purchase of goods or services requires a cost object approval before a procurement activity can be carried
out. This financial approval needs to be provided by the respective cost center owner as well as representatives
from subsequent hierarchy levels up to the CFO or CEO of the Company. The Company specific approval chain can
be found on the Oeconomicis website:

https://docs.google.com/spreadsheets/d/e/2PACX-
vRp4OSww2jxTBuC3vzoiAns5P4Nplxrl92eTjFswFX2q8vsFKNzdaV8msFfT48ZSTHb-
uFD40qDnZ3H/pubhtml?gid=1959876070&single=true

b. Procurement approval
After the Cost Object approval, the Procurement approval has to be provided before any purchase order can be
sent out to the supplier. The approval chains are defined as per the matrix below:

Threshold amount Threshold Approver

currency

≤ 500 EUR None

> 500 - 250,000 EUR Procurement representative

(none for catalogue items below 50,000 EUR)

> 250,000 - 500,000 EUR + Category (Cluster) Lead

> 500,000 EUR + Global Procurement Lead

2. Sourcing Matrix

Besides the above approval regulations, all sourcing projects must follow a specific procedure based on the total
net value of the product or service. The matrix below is outlining the number of offers that must be obtained, the

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requirements for the comparison, selection and decision-making, as well as the requirements for documentation.
The Company implements controls to detect attempts to avoid adherence to these thresholds.

Net value of ≤ EUR 50.000 > EUR 50,000 - 250,000 > EUR 250,000
purchasing
request

Quotation At least 1 At least 3 quotations. RfP / RfQ process with at least 3

quotation. quotations required

Quotation Preferably Written form and centrally Systematic filing of all relevant
documentation available in stored. Final agreement to (sent and received) documents in
written form. be attached to the a written form: RfP documents,
Purchase Order. Offers, Evaluation, Decision
making. Final agreement to be
attached to the Purchase Order.

Evaluation, Negotiation Price Price comparison, evaluation

negotiation recommended comparison, qualitative matrix of quantitative and
evaluation helpful and qualitative criteria, negotiation
negotiation highly required
recommended

Contracting Procurement determines what contracting document to be used

and if Legal to be involved

3. Invoicing

It is mandatory that every invoice contains the Purchase Order number. Otherwise, the invoice will get declined
and not be paid. A Purchase Order always needs to be raised prior to the supplier invoicing us. All invoices have to
be issued to the Company and sent electronically to invoices.1001@deliveryhero.com or via the Ariba network.

4. Contact Information

The procurement department of the Company can be reached via the Jira platform or by writing an email to
procurement@deliveryhero.com.

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