ensuring that the terms and conditions for the cooperation are specified in a written contract approved and signed in accordance with the COA, the Supplier Risk Management Policy, and the Legal Agreements Policy. The Legal Entity shall ensure that the Legal Department is involved, as stipulated in these policies. 2.4 Purchase Requirements 2.4.1 Basic Purchase Requirements The purchaser requesting to purchase certain goods or services is responsible for ensuring that the goods and services are sufficiently defined prior to the purchase. When defining the requirements for the goods and services, it is important that the requirements do not limit relevant substitution possibilities. A minimum of two quotations from unrelated approved or approvable vendors must be obtained prior to the approval of the purchase. If the purchase value is estimated to exceed EUR 100,000 within a 12-month period, a minimum of three quotations must be obtained. If the purchase is in accordance with an already approved Frame Agreement, no additional quotations are needed. The Managing Director of the Legal Entity may also, on a case-by-case basis, decide that no alternative quotations need to be obtained prior to the approval of the purchase, if multiple quotations are not feasible or suitable for the specific purchase – for example, due to lack of relevant substitution possibilities. 2.4.2 Purchase Approval When selecting between alternative quotations, the quotation in the best interest of the entire ECCO Group shall be selected. The essential parameters to be taken into account are: price, payment terms, total cost of ownership, benefits for other ECCO units, quality, skills, and supply performance. However, other parameters may also apply. The selection between the quotations shall be made by the person authorised to make the purchase, with approval in accordance with the COA for the Legal Entity. 2.4.3 Purchase Order The purchase commitment shall be made in form of a purchase order generated through an established computerised workflow system approved by Group Finance. The purchase order should be made by the purchaser and approved in accordance with the COA. In cases where computerised workflows have not been implemented in the Business Units (BUs), the purchase commitment shall be made in form of a written purchase order or other written form, signed by the purchaser and an approver in accordance with the COA. 2.5 Invoice Control 2.5.1 Use of Purchase-to-Pay (P2P) Systems In Legal Entities where P2P systems are available, submission and approval of purchase requests must take place prior to placing a purchase order. 47
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