🎯Time to Hit the Mark: Big News for Target Suppliers

A mildly annoyed middle-aged man saying,

Hey Vendorville, let's talk about Target! 🎯

The Target Supplier Performance Management (SPM) team announced that collect suppliers will begin to see compliance fines in ShipIQ as of August 4, 2024.

So, what does that look like for Target suppliers? We're so glad you asked…

Let's Dig In 💪

📄The Details

Target's collect compliance is split into two main categories:

On Time Release (OTR)
Supplier Pickup Adherence (SPA)

As of August 4, 2024, Target suppliers shipping collect through ShipIQ will be fined for violating these policies. Here's how the fines are broken down:

OTR Fine Calculation: If on time release is less than 100%, the supplier will be fined 1.5% of the cost of goods on "units released late and missing."
SPA Fine Calculation: If pick up adherence is less than 100%, the supplier will be fined 1.5% of the cost of goods on PO locations.

🗓️The Dates

Starting August 4-10, the OTR and SPA programs will measure compliance and generate compliance charges. All POs received and measured at DCs during this week will be liable to receive a compliance (VC) chargeback.

In week two of the rollout, August 11-17, OTR and SPA performance and compliance information will be visible in the SPMD in Greenfield. Similar to other SPM Compliance, suppliers will have 90 days to dispute once deductions are created.

🏹Next Steps

There's so much more to share, and we did, on our website. Check out this article for a deeper dive into Target's new program, including required and recommended next steps for Target suppliers. Do you need to get up to speed on all of Target's 2024 updates? Check out these articles:

🗣️Your Voice Matters 🗣️

Your feedback matters to Target's SPM Team! Do you have questions or feedback about Target's 2024 compliance updates? Share your thoughts in this form, and we'll make sure your voice is heard.

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Rick’s Tips 💘

I know we've been talking a lot about Target…but if you're a Walmart, Amazon, Home Depot, or CVS supplier, rest assured we've got you covered too. Did you know our website is full of on-demand content? Check out a few of my favorites here:

Walmart: Root Cause Analysis at Walmart

Amazon: How Amazon's Receive Process Impacts Suppliers

Home Depot: Home Depot Acronyms Cheat Sheet

CVS: CVS Compliance Fines and Metrics

Check out resources (and others on SupplierWiki’s website) to stay informed and ahead of the curve in today's competitive landscape.

Let’s Circle Back 🌀

Four Target employees excitedly clapping.

Hey you, yes you…we know staying on top of industry and retailer changes can be difficult. But you've got this. And we've got your back.

If you need a little brain break today, check out this word search we made especially for you. It's full of adjectives that describe you: resilient, innovative, resourceful, and proactive. Take a few minutes to unwind and enjoy—you deserve it!

❤️ Sincerely, Your Friends in Vendorville

SupplierWiki