Learn about:
The compliance policies Target requires all its vendors to follow
The ethical standards expected of Target vendors
How to access further information regarding Target’s vendor standards
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If you’re a retailer looking to grow your business, it’s hard to do better than getting your products into Target. However, to become a successful Target supplier and avoid deductions, you’ll need to familiarize yourself with Target’s compliance policies and ensure that you’re applying them to your business practices.
This article provides an overview of Target’s compliance policies, focusing on the most important factors in doing business with them.
General Standards for All Target Suppliers
The following standards apply to all potential Target suppliers, regardless of region or company size.
Target's Rules of Use
The Rules of Use establish the legal terms and conditions for vendors to do business with Target and use Target’s Partners Online (POL) platform. This agreement covers areas including confidentiality obligations, information security and privacy requirements, password security, and limitations on Target’s liability, among others.
Target’s audit program assesses working conditions, worker treatment, compensation, hiring processes, environmental practices, and compliance with local laws and Target’s Standards of Vendor Engagement (explored further in the following section of this article).
The Product Safety & Quality Assurance program aims to ensure that Target’s vendors are compliant with its food safety and product quality assurance standards. This program is overseen by the Product Safety, Quality, and Regulatory team (PSQR), as well as the Food Safety, Quality, and Regulatory team (FSQR).
Target operates as a bookseller and has committed to not selling certain forms of written content, including pornography, erotica, sexually explicit content, and any content that is illegal, infringing, or potentially harmful.
Target places a large amount of importance on its vendors conducting business in an ethical and legal manner. All vendors are required to read and comply with the standards in the Business Partner Code of Conduct (BPCC).
Electronic Funds Transfer (EFT) requirements
Target requires its domestic vendors to use EFT to digitally transfer money without the need for paper transactions, such as checks or cash.
An EDI system to receive purchase orders
Target requires its suppliers to use an EDI system to communicate purchase orders. EDI companies, such as SPS Commerce, leverage retail data to automate the electronic exchange of information about products, inventory, orders, shipments, payments, and sales, improving the efficiency and performance of supply chains.
A certificate of insurance
Target requires its vendors to carry General Liability insurance and Product Liability insurance.
Eligibility considerations for drop shipping
Drop shipped and non-drop shipped items appear identical to Target.com customers. Vendors that drop ship are therefore required to follow Target’s drop ship standards, in order to maintain brand integrity.
Ethical Standards
Target’s vendor standards include guidelines for its suppliers’ ethical conduct for business practices, workers, and the environment. Specific information regarding how to implement these guidelines can be accessed here.
Business Practices
Ethical business practices
Target’s vendors are required to adhere to ethical business practices. No exchange of favors, money, gifts, entertainment, or travel with the intent to influence business decisions is allowed. All records must be transparent and accurate.
Unauthorized subcontracting
All subcontracting practices must be visible to and authorized by Target before sourcing begins, in accordance with Target’s Responsible Sourcing and Sustainability Program and Partners Online requirements.
Standards for Workers
Grievance mechanisms
No matter the facilities, it’s inevitable that some issues with workers will occur. Target requires its vendors to implement grievance procedures to systematically receive, investigate, and effectively respond to these issues and determine the best solutions. Target recommends its vendors to follow the United Nations Guiding Principles on Business and Human Rights when developing grievance procedures.
No forced labor or human trafficking
Target will not do business with suppliers who knowingly use forced or incarcerated labor. For more specific information regarding how Target expects its vendors to treat their employees, check out the Supply Chain Labor & Human Rights Policies.
No underage labor
As with forced labor, Target will not do business with vendors who knowingly utilize underage labor, either in their facilities or in the companies they source materials from.
Health and safety
Target’s suppliers must adhere to its workplace health and safety guidelines. Target expects vendors to implement appropriate safeguards to prevent employee accidents, injuries, and illnesses. Specific expectations are enumerated in the Applying Target’s Standards of Vendor Engagement document.
No discrimination
Target’s vendors are expected to maintain a workplace free of discrimination. Vendors should hire workers based on their qualifications, abilities, and performance, rather than their characteristics unrelated to the work required by the job.
No harassment
Target suppliers are forbidden from engaging in, condoning, or tolerating any harassment in the workplace. Additionally, Target’s rules and standards must be posted in a public area of the workplace, to ensure that all employees have the opportunity to become familiar with them.
Working hours and overtime
Suppliers are not allowed to require working hours that exceed 60 hours per week or the applicable legal limit, whichever is less. Overtime hours must always be voluntary and command a premium rate.
Wages
Target requires its vendors to provide wages at rates that meet local laws and are paid in a timely manner. Payroll deductions should only be implemented to provide legal benefits or voluntary services.
Freedom of association
Vendors are required to recognize and respect workers’ freedom of association. If a union has been formed, suppliers must allow worker representatives to carry out their representative functions in accordance with local law.
Environmental Standards
Licenses and permitting
All legally required environmental permits and operating licenses must be acquired and maintained by Target’s suppliers. These laws and regulations are continually being updated, and Target recommends that its vendors re-evaluate annually.
Environmental management and monitoring systems
Vendors must have an environmental management system to identify, characterize, and inventory all impacts on air, water, energy systems, and wastewater. This system should set measurable goals for the areas impacted.
No illegal wastewater discharge
To ensure that pollutants are limited, vendors are required to install and maintain wastewater treatment systems. Target does not allow its suppliers to use undersized, bypassed, or inoperable wastewater treatment systems.
Waste reduction and disposal
Hazardous waste must be handled, stored, transported, and disposed of in a legal manner. Target explicitly seeks to do business with suppliers who actively work to reduce the waste output of their production processes.
Energy and water use
Target expects suppliers to set clear goals toward improving energy and water efficiency. The progress made toward these goals must be continually documented.
Air emissions
Appropriate air emissions controls must be installed and maintained by Target vendors. All buildings, facilities, and processes must be continually monitored and recorded to ensure regulatory compliance.
Compliance Policies
Along with its general and ethical standards, Target requires its vendors to adhere to the following compliance policies to avoid deductions. Please note that this list is not comprehensive, and further details regarding these guidelines are available in the longer Supplier Performance Management Compliance Policy document provided by Target.
Fill Rate
Target expects its vendors to ship the full quantity of goods communicated on the purchase order (EDI 850). Vendors who short ship will be liable for compliance deductions. Any changes to the purchase order quantities should be communicated to Target as soon as possible.
On Time Ship
Target requires its vendors to enter their shipments into the Vendor Ready Ship (VRS) program by 11 AM CT two business days prior to the requested pickup date. Vendors who ship outside of the window provided by Target can expect deductions.
On Time Release
Vendors are expected to use ShipIQ to review and edit shipments. Product must be ready for pickup by the requested date in ShipIQ.
On Time Arrival
Target expects its freight to arrive at its distribution centers within the designated ship window. Delayed shipments may result in chargebacks.
Advanced Shipping Notice (ASN) Availability
ASN data is essential to Target’s receipt processing at its distribution centers. Target requires its vendors to submit timely and accurate ASN data to provide enhanced visibility of products inbound to the distribution centers.
Related Reading: 2025 Target Compliance Fines
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