2026 Target Supplier Compliance Checklist

Use this checklist before every Target PO ships. Each item corresponds to a specific compliance requirement that, if missed, can result in chargebacks under Target's On-Time Fill Rate (OTFR) program or Perfect Order Program.

1. Purchase Order & EDI Setup

Target requires all suppliers to transact via EDI. Ensure EDI is configured correctly before your first shipment.

• EDI 850 (Purchase Order): Received, acknowledged, and parsed correctly in your system
• EDI 856 (ASN): Configured to send for 100% of POs; must be submitted before the in-yard date and time
• EDI 810 (Invoice): Accurate and submitted on time via Partners Online (POL)
• EFT payment setup: Electronic Funds Transfer configured; no paper check payments accepted by Target
• POL account access: Partners Online access confirmed; all team members trained
• Routing instructions reviewed: Collect vs. Prepaid routing confirmed per PO

2. On-Time Fill Rate (OTFR) Readiness

Target's OTFR program has strict timing and quantity requirements with direct chargeback consequences.

• Supplier Performance Adherence: 100% of shipments ready on assigned date/time per VRS — 1.5% COGS fine for non-compliance
• On-Time (Collect/We Pay): Shipment ready for carrier pickup within VRS-assigned window — 3% COGS fine for non-compliance
• On-Time (Prepaid/They Pay): Target DC receives shipment within in-yard delivery window — 3% COGS fine for non-compliance
• Fill Rate Original: 95%+ of items on EDI 850 shipped; measured at item level — 3% COGS fine for non-compliance
• VRS entry submitted: Entered into Vendor Ready Ship (VRS) by 11:00 AM CT, two business days before pickup
• Shipping window confirmed: Earliest and latest pickup dates in VRS match intended ship dates

3. Perfect Order Program (Effective May 2025)

Target's Perfect Order Program mirrors Walmart's SQEP initiative and focuses on ASN accuracy and barcode quality.

• ASN Availability: EDI 856 sent for 100% of POs — no missing ASNs
• ASN Accuracy: ASN data matches physical shipment at item, quantity, and UCC-128 level
• Physical Barcode Quality: All shipping labels and product barcodes scan cleanly — $0.75/carton fine for defects
• ASN sent before in-yard: ASN transmitted prior to shipment arriving at DC — timing is critical
• No duplicate ASNs: Each PO has exactly one accurate ASN; duplicates trigger defects

4. Labeling & Packaging

• GS1-128 carton labels: Applied correctly on all shipping units per Target's label specifications
• UPC/EAN barcodes: Verified scannable on all inner and retail units
• Master case markings: Item number, description, quantity, and PO number visible on all cases
• Pallet configuration: Meets Target's TI/HI requirements; no mixed SKUs unless authorized
• Retail-ready packaging: Product meets shelf-ready requirements if applicable to category

5. Routing & Transportation

• Routing guide reviewed: Current Target routing guide confirmed before booking shipment
• Carrier selection: Target-approved carrier used for Collect shipments; unauthorized carriers trigger fines
• BOL accuracy: Bill of Lading matches PO, ASN, and carton count exactly
• Appointment scheduled: DC delivery appointment confirmed if required for prepaid shipments

6. Standards of Vendor Engagement (SOVE)

Target requires all suppliers to comply with its SOVE — the ethical standards governing labor, environment, and business conduct.

• SOVE reviewed and acknowledged: Applicable team members have read and acknowledged Target's SOVE
• Factory disclosure: All production locations disclosed in Partners Online before production begins
• No unauthorized subcontracting: All subcontractors disclosed and approved by Target prior to use
• Labor standards in place: Employment contracts, payslips, and grievance procedures meet SOVE requirements
• Third-party audit compliance: Factory audit passed or corrective action plan submitted if applicable

7. Insurance & Legal Requirements

• General Liability insurance: Current certificate on file; coverage meets Target minimums
• Product Liability insurance: Active and adequate for product category
• Drop ship standards: If drop-shipping Target.com orders, all drop ship standards are confirmed
• Rules of Use accepted: Legal terms for POL platform accepted

8. Dispute Management

• Synergy portal access: Account set up for OTFR and Perfect Order chargeback disputes
• SPMD Summary Report reviewed: Accessed via POL every Monday; violations, exceptions, and net chargebacks reviewed
• SPM Team contact established: Direct contact with Target's Supplier Performance Management Team confirmed
• Documentation organized: All shipping records, ASNs, BOLs, and EDI transmissions archived for dispute use

How WarehouseQuote Helps Target Brands

WarehouseQuote's managed warehousing platform provides real-time retail data visibility including MABD, MRBD, ship windows, and PO batch tracking — plus dedicated exception management to protect your OTFR score and reduce chargebacks across your Target business.

Talk to our team to learn how WarehouseQuote supports Target supplier compliance.