In this article, learn about:
Target’s Standards of Vendor Engagement (SOVE)
Essential prerequisites for becoming a Target supplier
How to fill out a Target Supplier Intake Form
Setting yourself up for growth in Target
Getting started as a supplier in large retailers is often challenging for newer and smaller brands, but many retailers, especially Target, take an interest in small brands that show a lot of capacity for growth.
Whereas some retailers prefer already established suppliers, Target has specific programs in place designed to onboard newer suppliers that fall under certain total sales thresholds.
That being said, there is still a rigorous set of protocols that Target suppliers need to meet to be set up for successful selling. Prospective Target suppliers need to be prepared to meet scalability/sales figures and Target’s ethical business practice standards to have a chance at success.
Fundamental Target Requirements for Suppliers
Target communicates an exhaustive list of the requirements for suppliers’ ethical business practices in the Standards of Vendor Engagement document.
Compliance with Target’s Ethical Standards
On its website, Target lists out a few high-level essentials for prospective Target suppliers:
No unauthorized subcontracting
Mechanisms for receiving worker grievances
No forced labor or human trafficking
No labor under the age of local legal requirements or the age of 15
Safe working environments
No tolerance for harassment or discriminatory behavior
Fair working hours and wages for employees
Freedom of association
Adequate licenses and permits
Environmental management and monitoring systems, including proper wastewater discharge, waste reduction and disposal, energy and water use, and emissions to air
In the Standards of Vendor Engagement (SOVE), each of these rules is fleshed out in much greater detail.
For example, in the section on grievance mechanisms (12-19), there is a definition of both “grievance” and “grievance mechanism” and an elaboration on the UN’s eight components of effectiveness criteria for grievance mechanisms. The document also includes helpful tips and best practices for maintaining clear lines of communication between employees and the organizations they work for.
Target also has SOVE versions in non-English languages for increased applicability to particular regions.
Communicating with the Corporate Compliance & Ethics Team at Target
Target wants to help their suppliers and suppliers’ partners have effective ways of reporting misconduct.
The Target Integrity Hotline (www.TargetIntegrityHotline.com) can be used to call in or anonymously complete a webform for misconduct. These lines can be called 24 hours/day, and they vary by region:
U.S. — 1-800-541-6838
India — 000-800-100-1657
Bangladesh — (0) 9610-998509
China — 4001201894
Hong Kong — 800906528
Indonesia — (021) 50918413
Vietnam — 024 4458 3187
Other non-U.S. locations (collect call) — 470-219-7116
Reporting misconduct can also be done via email at ethics@target.com or via mail to:
Target Corporation
1000 Nicollet Mall #3110
Minneapolis, MN 55403
Target Supplier Engagement
Target partners with a variety of national organizations to maintain a diverse base of suppliers including but not limited to:
These initiatives help Target extend their supplier base. For suppliers of all kinds, it may be helpful to try to engage with a third-party association or council that can advocate for you with retailers. Most major retailers frequently partner with national and international business support entities, and it could be a good way to get more cheerleaders on your side when it comes to breaking into a new market.
Scalability
Once you have determined that you have met the legal/ethical standards for working with Target, it’s important to figure out if you have the infrastructure and scalability that is required to sell large quantities in a major retailer.
Most suppliers getting started in Target have a sense of who the Target shopper is and can articulate and show with data why their product will work specifically with those shoppers. Target may be more interested in your item’s history in Trader Joe’s or smaller, local retailers than how your item performed in Walmart or Amazon.
Scalability also means having a great track record of supply chain and logistics management. Have you been shipping in full to your customers at regular growth intervals? Or have there been bumps in the road along the way? If so, what were the details of those bumps?
If you do get into Target, come up with a reasonable expectation and a healthy plan for growth in the retailer, taking into consideration the possibility of a large sales volume.
Other things to consider are if your organization is Electronic Funds Transfer (EFT) and Electronic Data Interchange (EDI) capable. Most new and large suppliers already have these in place for other business transactions, but it may be an essential part of growing and scalability to have these in place, especially for Target as they are requirements for all of their business partners.
Related Reading: What Is EDI (Electronic Data Interchange)?
How to Become a Target Supplier
After those fundamental requirements are met, you can start with the official process of reaching out to Target. Many suppliers will be able to avoid one or more of these processes depending on if Target takes an interest in your product from the outset. For example, if Target reaches out to do business with you, it may not be necessary to reach out to a buyer.
Contact a Buyer
It may be a good idea to start your journey with Target by going straight to the buyer in the category that your product would eventually land, but this step may come later down the road depending on your approach.
Using resources like Buyer Connect, Range Me, or LinkedIn can be helpful for narrowing down your search, but getting in touch with a buyer can be pretty challenging, even when you already have the contact information.
Supplier Intake Form
Target’s official process for becoming a supplier starts with submitting a Supplier Intake Form. You should have the following on hand before getting started on the form:
Last year’s tax return
EIN/Duns number(s)
Product certifications
Current retail numbers
Last year’s P+L statements
Partner-company details
From there, the form will ask for your organization's primary contact information:
First Name
Last Name
Email Address
Phone Number (Optional)
The next phase is clarifying information about the primary contact. Is this person a:
Employee of the company selling
Red Group Partner
Agency
Channel Partner/Integrator
Owner
Then Target requests company information:
Public-facing name
Legal name
Year founded
Website
Social media accounts/URLs
Applicable Target category & sub-categories
Company headquarters
Company size
Duns/EIN numbers
Projected revenue for calendar year
Last year’s revenue
Insurance
And much more
This information is helpful for Target to get a sense of how good a fit your item(s) may be for their stores. As much work as you can do beforehand in getting certifications, growing a social media presence, and making good sales to big customers will be helpful for delivering the pitch.
Negotiation with Target
Once a connection has been made with Target, either through the traditional Supplier Intake Form or via contact with a buyer, the process of talking through the business plan will begin. Pricing negotiations and payment terms, as well as any other relevant details for a supplier agreement, will take place.
A lot of deals can get stuck in this phase if there is reluctance on Target’s part to move forward. It’s important to keep your brand identity and ideal customer in mind. If now isn’t the right time for Target, make a plan for growing in the specific ways that they are looking for.
Test Selling in Target and Expansion
If an item is accepted for sale in Target, it will usually go through a test selling/expansion period before full integration. Even new items from large brands will be put through this process most of the time to protect Target and the supplier from risk.
During this period, it is essential to prepare for potential growth. A successful test selling run is great, but if your supply chain isn’t prepared to sustain the velocity of orders, it could lead to a strained relationship with Target.
Ideally, your test selling stores/regions will match the right shoppers. Understanding shopper behavior by trait/region is key for putting your best foot forward with Target.
Target’s Accelerator Programs
Target also has internal programs designed to help businesses get started, either from the ground up or specifically with Target, called Target Accelerators. While these programs are generally designed to get the most out of newer brands, long-established brands looking to make a big jump could benefit from reaching out as well.
Along with their normal programs, Target provides prospective suppliers with the Accelerators Learning Center, a library of resources about how to succeed in Target, covering everything from marketing and branding to packaging and distribution information.
Forward Founders
Target’s Forward Founders Program is for new brands. Its ideal partners would be companies under 6 employees at an organization with less than $500,000 in lifetime revenue. They are also open to partnering with small brands they are excited about with “limited manufacturing and supply chain capabilities.”
Takeoff Program
Whereas the Forward Founders Program is designed for beginners, the Takeoff Program is for brands that have already been selected by Target for sale in stores. Prospective suppliers who fit the criteria and feel that their products would sell well in Target stores and .com can use the Takeoff Program as a means of aggressive expansion.
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