Understanding Target's Compliance Program

Learn how Target's Compliance Program measures supplier performance, the key metrics suppliers are expected to meet, and recent updates to compliance requirements.

By DhaReclaim · Reviewed by DhaReclaim Operations Team · Published July 8, 2026 · Updated November 6, 2026

Overview

Target's Compliance Program is designed to improve supplier performance by ensuring products arrive on time, in full, and with accurate shipping information. The goal is to reduce supply chain disruptions, improve inventory availability, and create a better shopping experience for customers.

The strongest supplier performance comes from delivering the right products, at the right time, with complete and accurate shipment information.

Recent Program Updates

Target continues to expand its compliance program by introducing additional receiving quality metrics. Recent updates include new measurements for ASN shipment accuracy, ASN item accuracy, and physical barcode accuracy, helping improve receiving efficiency at distribution centers.

Key Supplier Performance Metrics

Metric	Target Goal
Original Fill Rate	95%
On-Time Delivery	100%
ASN Availability	100%
On Time Release	100%
Supplier Pickup Adherence	100%

Common Compliance Charges

Compliance Area	Typical Penalty
Fill Rate	Percentage of COGS for quantities not received in full.
On-Time Delivery	Percentage of COGS for shipments received outside the required window.
ASN Availability	Charges for shipments received without a valid ASN.
On Time Release	Charges when shipments are not released within the required timeframe.
Supplier Pickup Adherence	Charges for shipments not picked up within the assigned window.

Best Practices

Review supplier performance reports regularly.
Validate ASN information before every shipment.
Keep product, barcode, and item data accurate.
Monitor fill rate and on-time delivery trends.
Address recurring compliance issues before they become costly.

Conclusion

Target's Compliance Program encourages suppliers to improve shipment accuracy, delivery performance, and operational consistency. By monitoring key performance metrics and correcting issues early, suppliers can reduce compliance charges, strengthen retailer relationships, and improve overall supply chain efficiency.