In this article, learn about:
Target’s Perfect Order Program
The new compliance metrics Target’s SPM team is rolling out
Steps vendors need to take to comply with changes
Target’s Supplier Performance Management (SPM) team drives vendor performance and compliance across the organization. This effort includes updating the Vendor Compliance Policy annually to ensure operational excellence.
The Target SPM team recently announced plans to roll out a portfolio of quality standards in 2025. These changes will specifically impact Target’s domestic merchandise vendors. In this article, we’ll explore the upcoming changes to the Perfect Order Program and what they mean for Target vendors.
What is Target's Perfect Order Program?
Target's Perfect Order Program ensures that Target receives all items when expected and without any damages. Vendors achieving “perfect order” drive guest purchasability, prompting shared growth between Target and its vendors.
New Changes to the Perfect Order Program
The changes to Target's Perfect Order Program metrics include updates to ASN Availability, the introduction of ASN Accuracy, and a new measure for Physical Barcode Accuracy.
Metric | Compliance Rate | Minimum Threshold | Performance Goal |
ASN Availability – EDI 856 | $0.75 per carton | $100 ($0.0 for Not in A Status) | 100% |
ASN Accuracy - EDI 856 (Shipment or Item) | $0.75 per carton | $100 | 100% |
Physical Barcode Accuracy | $0.75 per carton | $100 | 100% |
ASN Availability
For ASN Availability, there are no changes to the measurement itself. This metric will still assess whether an error-free EDI 856 Advance Ship Notice (ASN) is received before the in-yard date and time for the associated delivery trailer. However, Target is adjusting the cost structure to align with a more common industry standard. Moving forward, fees will be calculated on a cost-per-carton basis, with a rate of $0.75 per carton, which remains below the industry average.
Related Reading: EDI 856—Advance Ship Notice/Manifest
ASN Accuracy
A new metric, ASN Accuracy, has been introduced and consists of two components: Shipment Accuracy and Item Accuracy. Shipment Accuracy measures whether the Bill of Lading (BOL) number is in the correct format and placed in the appropriate segment of the EDI 856 ASN at the shipment level. Item Accuracy evaluates whether the item attributes in the EDI 856 ASN, such as case pack, barcode, and other product details, match the corresponding purchase order data.
Physical Barcode Accuracy
Another new metric, Physical Barcode Accuracy, measures the number of cartons received at the Target distribution center (DC) with a legible, scannable barcode. This metric helps ensure accurate and efficient product intake during the receiving process. A complete list of barcode requirements for Vendors can be found in the Partners Online portal.
When Do the Changes Start?
The compliance changes will take effect for purchase orders (POs) being measured starting in May Week 1. This may include some POs that were physically shipped and arrived at Target’s distribution centers (DCs) before May Week 1 but were first scanned into the DCs during the measurement window. Vendors are encouraged to correct any defects as soon as possible to avoid potential chargebacks.
Suppliers can now track their performance related to these changes in the Supplier Performance Management Dashboard (SPMD). This visibility allows suppliers to monitor any potential defects and make necessary corrections to avoid chargebacks once the compliance measures take effect in May Week 1.
Related Resource: Target Retail Calendar
Next Steps for Vendors
Review New Compliance Policies
The SPM advises vendors to review the following policies: SPM Compliance Policy, ASN Availability & Accuracy, and Physical Barcode Accuracy. Familiarizing yourself with these changes will help ensure your shipments meet Target's updated standards and avoid potential chargebacks.
Follow Best Practices
Even though the changes won’t take effect until May, now is the time to start adjusting your processes to prevent future compliance issues.
Double-check your ASNs before sending them. A small mistake now could mean a big charge later.
Review your item data in Target’s system and compare it with your internal system or the system used to send ASNs. Ensure that key details—such as barcode, case pack, and store ship pack—match across both systems. If any discrepancies exist, correct them before May.
Test your barcodes before shipping. If they scan cleanly in your warehouse, they'll likely scan properly at Target's DCs.
Loop in your team. Whether it's your warehouse crew, logistics team, or compliance team, make sure everyone is aware of these changes before they go into effect.
Reach out to the SPM Team if Needed
The SPM team wants to help Target vendors adjust to these new changes. If you have questions about the new changes, you can reach out to their team via Request Support in Partners Online.
Stay Connected with SupplierWiki
For more free educational content like this (eBooks, Cheat Sheets, Webinars, and Articles), sign up for our newsletter or explore our website! We cover material essential for retail suppliers, especially related to revenue loss at Target, Walmart, Amazon, CVS, Kroger, Lowe’s, and Home Depot.