3 Reasons Connecting With Target's Supplier Performance Management Team Can Help Your Business

Who is the Supplier Performance Management Team?

Formally, the Supplier Performance Management (SPM) team is a lean team at Target within Global Supply Chain and Logistics that manages performance measurement logic and compliance administration. Their roles and responsibilities include: 

• Partnering with Inventory Management, acting as a bridge between Global Supply Chain Logistics (GSCL) and suppliers. SPM enables growth by connecting the needs of the supply chain with Target's suppliers in order to drive speed and reliability.

• Functioning to reduce variability within the 1st mile by identifying and resolving data and process opportunities.

• Monitors programs, performance improvement initiatives, and compliance administration related to on-time shipping, on-time arrival, fill rate, and EDI program.

How to Get Connected to an SPM Contact

In Target's POL portal, navigate to the SPM Dashboard in the "Apps & Reports" tab. Once you launch the Supplier Performance Management Dashboard, you can scroll all the way down to the "Contacts & Resources" section (see screenshot below). On the lower right-hand side, there is a section "SPM Office Hours."

Once you click on the "SPM Office Hours," it will navigate you to this questionnaire below (and then it will ask you what time you have available to meet with them).

Then save and guard this contact with your life: they are gold! They can also help navigate you to any AP contacts/general inboxes for additional questions they can't help with or that another team could help with more effectively.

How Target Suppliers Can Prepare Before They Go

1. Understand your Supply Chain Performance Metrics

There are four key performance indicators that Target uses to measure Supply Chain Performance: 

• On Time Ship (Collect VRS)

On Time Ship ensures orders are scheduled within a specified time on the purchase order. To gauge this, the total units picked up within the ship window are divided by the total units shipped. The target is to achieve 100% on-time shipping. However, if units aren't scheduled within the window, a 5% penalty applies.

• On Time Arrival (Prepaid)

On Time Arrival assesses whether orders are delivered within the designated time. This is calculated by dividing the total units delivered within the delivery window by the total units shipped. The aim is to achieve 100% on-time arrival. However, similarly to On Time Ship, if units aren't received within the delivery window, there's a 5% penalty.

• Fill Rate Revised

Fill Rate Revised indicates how well suppliers meet the revised order quantity. This is calculated by dividing the quantity received by the revised order quantity. The target is a 95% fill rate. If the fill rate falls below 95%, however, a 5% penalty applies to units not received within the window.

• EDI 856 Availability

EDI 856 Availability measures if error-free EDI 856 (ASN) is received before the in-yard date for trailer delivery. This is calculated by dividing the number of available ASNs by the number of measured PO/Appts. The aim is 100% availability. If ASNs are late or missing, a 3% penalty applies to the cost of goods.

2. Explore the Resources Available in PartnersOnline

Explore the resources available in Partners Online to better understand what vendors expect. Some resources that you can expect to find include:

• Carton & Pallet Markings: Learn about requirements and vendor expectations.

• Carton Sorting & Pallet Loading: Understand requirements and vendor expectations.

• Vendor FAQs: Get answers to common questions.

• Vendor Expectations: Find details on payment methods (We Pay/Collect and They Pay/Prepaid).

• ShipIQ Overview: Understand ShipIQ.

• Store & DC Addresses:  Access Target store and distribution center address information.

For performance reporting:

• Find the SPM Dashboard on the Apps & Reports tab in POL.

• Learn about SPMD Supplier Performance Reports on this page. It provides insight into domestic Supplier Performance and Compliance charges. Use this material to track and understand your supply chain performance.

3. Be Ready to Learn and Take Action

For smoother operations and better performance in your supply chain, remember these important steps:

• Stay open to learning and taking action to enhance your shipping and purchase order practices.

• Regularly review your performance and keep an eye on Violation Summary Reports to catch any potential chargebacks.

• Take the time to investigate any defects or missed performance to find opportunities for improvement.

• Stay informed about compliance changes and supply chain issues by keeping an eye on POL 'All News and Updates'. This will help you stay ahead and keep Target's supply chain running smoothly.

Why Should Suppliers Get Connected With the SPM Team?

1. They can help you navigate Target's compliance (OTFR (On Time Fill Rate) and EDI expectations and answer relevant questions to your day-to-day business.

2. They may be able to advise you on internal process changes/adjustments as it relates to PO allocation, EDI, PO processing, order fulfillment, and general operational and supply chain improvements to help lower OTFR impacts and fines/fees.

3. As suppliers know, getting in direct contact with someone at Target can be difficult. These contacts are not only helpful but also a dedicated resource to discuss crucial issues that can be affecting your business. With their help, you can lower the impact of compliance issues and potentially long-term deductions.. Partnering with an SPM contact can improve your day-to-day business operations and potentially make your business more profitable.

How SupplyPike Can Help

For lasting success, identifying the root cause of supply chain issues is essential for revenue recovery. Without clear visibility into specific areas of the supply chain, revenue loss can quickly escalate.

SupplyPike offers solutions to gather data and verify chargebacks, automatically disputing invalid ones and swiftly reclaiming lost funds. SupplyPike's flat-rate solution is designed to encourage supplier improvement, preventing chargebacks and compliance fines. Schedule a meeting with a team member to see if SupplyPike is a good fit for your Target business!

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