1. Home
  2. Continuous Improvement
  3. Vendor Compliance
  4. Factory Audits
  5. Target Vendor Compliance
Searching...

Target Vendor Compliance

Contents

Introduction

Target has set standards for Business Partners and factories to uphold.  This is both social responsibility and environmental responsibility.

Required Audits:

*All factories must be registered on Target Partner’s Online (POL) system 70 – 90 days prior to production*

Overview

  • Business is awarded
  • Business Partner Activation
    • Business partner activation is a one-time process, which must be completed before production begins. It includes reviewing Target’s Social Compliance requirements on POL, agreeing to participate in the program, and providing information about the company (Advantus is the Business Partner).

Target expects Business Partners to work with factories prior to registration.

Target has a 3 Strike Policy for Business Partners for severe violations.

When severe violations are identified, the first violation is a warning.  The second violation is vendor probation.  The third violation requires vendor deactivation.

  • Any 3 strikes within a 3 year period results in vendor deactivation
  •  Any 2 strikes within a 3 year period results in vendor probation
  •  Strikes are valid for 3 years

New Facility Registration

Guidelines to Know if you need to register the factory:​

  • 1.  Target is the Importer of Record.
  • 2.  Does this registration include any product that is Target Owned Brand or Target Exclusive?  (Note: this includes National Brand Exclusive)RS Audit (BSCI, SMETA Sedex 4 pillar), Higg Index, Inspectorio RequiredFactories fall into 2 categories:
    • 1. The factory does not have a scheme report at the time of registration.  The audit must be completed within 3 months of notice.
    •  2. The factory already has a scheme report at the time of registration.  The audit must be current and completed within the past 12 months.  It also must meet the Target criteria.
  • Responsible.Sourcing@target.com
  • rise-support@inspectorio.com
  • 1.  Target is NOT the Importer of Record.
    2. Target is NOT the Importer of Record and the product is National Brand only. Gather the below information about factories
    • Registration must be completed before FA
    • AUCA (Authorization for Unannounced Compliance Audits) are no longer needed per the contract
    • SOVE (Standards of Vendor Engagement): this must be posted in each factory in local language (see below in the Social Compliance section for more details on this). The SOVE consists of 9 principles:
      • Safe and healthy workplace
      • No forced or compulsory labor
      • Fair disciplinary practices
      • No discrimination
      • Reasonable working hours and overtime
      • Fair wages
      • No child labor
      • Environment
      • No bribery

English-SOVE-Poster
Chinese Simplified SOVE

****From Target “Contract”

Compliance with the VCOC and SOVE. Vendor represents, warrants and guarantees that Vendor, in addition to anyone affiliated with, representing or subcontracted by Vendor, will comply with the Vendor Code of Conduct and Standards of Vendor Engagement (each as set forth on POL) in obtaining, manufacturing, selling and delivering the Goods to Purchaser. If Vendor produces Goods that are subject to Purchaser’s Responsible Sourcing Program as described on POL, Vendor consents to unannounced Responsible Sourcing audits at any facility where Vendor or its approved subcontractors manufacture or store such Goods, which includes any facility supplying materials for or components of Goods that are in scope for Purchaser’s Responsible Sourcing Program (each, a “Facility” and collectively, the “Facilities”). Vendor represents and warrants that it will maintain an accurate list in VMM of Facilities used or contemplated for use by Vendor. Vendor will advise all Facilities that a Responsible Sourcing audit may be performed at any time, is not contingent upon current production of Goods, and must be permitted by the management of the Facilities, whenever requested. Vendor represents and warrants that no order for Goods that are subject to Purchaser’s Responsible Sourcing Program shall be placed with any subcontractor without Purchaser’s prior, written consent. Vendor acknowledges and agrees that if (i) a Facility denies access to any Purchaser employee or an authorized representative of Purchaser exhibiting proper identification, (ii) inaccurate Facility information is provided to Purchaser (including, but not limited to, the Facility’s address and production status), or (iii) Goods are produced in an unregistered Facility or an unapproved subcontracted Facility, then Purchaser is entitled to take a chargeback. Vendor understands Purchaser has zero tolerance with respect to certain severe violations of its Standards of Vendor engagement, as described on POL, and that the identification of any such violation may result in immediate deactivation of the Facility for up to three (3) years and the cancellation of all Purchase Orders associated with the Facility. Vendor represents and warrants to provide Purchaser’s auditors complete access to all manufacturing facilities, including the uninhibited collection of documentation and data necessary to complete the audit. Subject to applicable laws, including, without limitation, all privacy laws, Vendor grants Purchaser access to all wage, employee, production and other records necessary to verify compliance with the Standards of Vendor Engagement, all local regulations governing wage, environmental standards, working conditions and labor, and all laws and regulations governing the importation of Goods. To the extent that personally identifiable information cannot be shared with Purchaser due to an applicable law, Vendor will extract or redact that information from the responsive records. Purchaser acknowledges that such extractions or redactions, when done in compliance with law, shall not constitute a failure under Purchaser’s Responsible Sourcing Program.

Log audits in QuickBase.

  • Inspectorio Rise platform
    • Assessments: RS Compliance
    • Assessments: QAFA (If the factory will be producing Target Brand products and they are considered the primary manufacturing facility, then they will also need the Quality QAFA Assessment)

Note:  Intakes are where Target evaluates the uploaded audit.  There is no action for the factory or supplier until the CAPA is required/requested.

Trainings:

Target Inspectorio Rise EQ Training May 2020

Requesting a Target Self Assessment Steps

Inspectorio Academy Training Material

Target BSCI Requirements for Sharing Audits:

Target Sedex Requirement for Sharing Audits:

Approved audit firms for SMETA are Elevate, Underwriters Laboratories (UL), Intertek, Societe Generale de Survelliance (SGS), and Bureau Veritas (BV).

How to Access Sedex Account and Set Up Relationships

Log in here using the credentials on the QuickBase Compliance Login Page – the login is called Sedex Login (SMETA audit for Walmart).

After logging in, follow the below steps:

  • Click on Sedex Advance
  • Click on “Company” and “My relationships” to view the current relationships.
  • You will see that we have a direct relationship with the factory (DongGuan Hui Jun Printing Product Co. Ltd), a direct relationship with Walmart, and an indirect relationship with Walmart to the factory has also been established so that Walmart can see the audit report. The indirect relationship with Walmart to the factory was established by clicking the “Link suppliers to customers” at the top.
  • To set up a new relationship, click “Initiate a relationship” at the top. Before initiating a new relationship with the factory, make sure they have registered for a Sedex account. You will not be able to search for them if they don’t have an account set up.
  • Enter the factory name, select “Supplier” for the “Target company is my/my subsidiary’s”, and select “Direct” for the “Type of Relationship”. When you start to enter the factory’s name, other factory names should automatically populate where you can select the correct one. After all has been completed, click “Submit” at the bottom:

Vendor Factory Assessment (VFA)

To access the latest version of the VFA, log into Target POL (https://www.partnersonline.com/) and follow this file path:

Home > Library >> Source Product >> Business Partner Qualification >> Factory Assessment >> Forms >> Vendor Factory Assessment (VFA) Tool

It is also saved here, but make sure it is the most updated version or Target will deny it: S:Drive\Compliance\Product Testing & Compliance\Audits & Inspections\Target\Forms, Instructions, Addtl Info\Factory Assessments

This is a self-evaluation completed by a Target factory and focuses on:

  • Quality and Supplier Management
  • Production and Process Control
  • Production Test Plans
  • Control of Non-Conforming Materials
  • Corrective Action
  • Training
  • Equipment and Maintenance
  • Site Conditions
  • Social Compliance
  • C-TPAT (Custom’s Trade Partnership Against Terrorism)
  • Production Sector categories that focus on process and/or product categories as they apply to the manufacturing activity within the facility’s walls

It must be accurate and realistic, and must be filled out prior to a Target auditor conducting the FA. The factory completes the VFA, and includes it with the email request to Target PSQA (Product Safety & Quality Assurance) to schedule the FA.

VFA Spreadsheet Tabs

  • VFA Overview – Instructions
    • To be reviewed by the factory
  • VFA Onboarding Checklist
    • Each training topic must be completed by the factory before an ‘X’ can be placed in the “Check when Completed” column. See here for instructions that should be sent to the factory.
    • Referenced in the instructions is the Target Product Safety & Quality Assurance (PSQA) Process Manual.  As part of the training, the factory is required to review the Testing section (pages 19-38) and the Product Inspection section (pages 39-66), You can find it here.
    • The factory is also required to sign the Target Ethics Policy letter and include it when they send the VFA to PSQA. You can find it here.
  • Factory Information
    • To be completed by the factory
  • FA Preparation & Documents
    • To be reviewed by the factory
  • Factory Capabilities
    • To be completed by the factory
  • Machine List & Capacity
    • To be completed by the factory
    • PSQA may also request the below documents that you can get from the factory:
      • Factory business license
      • Factory layout
      • Factory organizational chart
      • Factory process flow chart
      • Factory manufacturing controls
      • Factory production test plan
      • Map to factory
  • FA Walk Thru
    • Factory to leave this tab blank
  • Vendor Factory Assessment (VFA)
    • To be completed by the factory (please see section below about auto-fail questions)
  • Workmanship Audit
    • Typically is filled out only by a new factory
  • Children Sleepwear
    • Factory to leave this tab blank
  • Mildew Mold Prevention
    • Factory to complete this tab

Factory Assessment (FA)

This is an evaluation/audit performed by a Target inspector. The Factory Assessment makes sure the factory is qualified to product products for Target by checking the location capacity and capabilities.

See below instructions you can give to the factory when sending the VFA to be completed (these documents are required when emailing PSQA to schedule the FA):

  • Vendor Factory Assessment (VFA)
    • Using Google Chrome, please follow this file path in POL to find the new version of the VFA: Home > Library > Source Product >> Business Partner Qualification >> Factory Assessment >> Forms >> Vendor Factory Assessment (VFA) Tool
    • Step-by-step instructions are listed on the 2nd tab (VFA Overview-Instructions) of the VFA
    • Do not send the VFA to Eric until it is fully complete, which includes listing your Factory ID#, Vendor ID#, and category department # (s).
      • Eric will send the VFA, along with all necessary required documents to Target to schedule the FA
  • Plant Diagram/Map
    • A map of the plant and floor layout
  • Process Flow Diagram
  • A diagram of the manufacturing process beginning with raw material receipt and ending with the last step prior to shipping the product.  Identify all processing, assembling, finishing, packaging, and warehousing steps involved in the manufacture of the product.  Vendor must clearly indicate which manufacturing processes do not occur at this facility.
  • Manufacturing Controls List/Diagram
  • A list or diagram that identifies the quality assurance/quality control processes and activities that take place at each work station at the factory to guarantee the product quality meets Target expectations as well as complies with CPSC/regulatory and safety requirements.  All inline quality inspections should be listed with a description of the quality check being made.  (Note: Target recognizes and accepts that the vendor may choose to combine the list of manufacturing controls and the manufacturing process flow diagram into one document.)

Within 7 calendar days from the date of the FA completion date, a score and a rating are sent to Advantus. Usually there is a Corrective Action Plan (CAP) included. The CAP includes:

  • Assignment ID
  • Reason for evaluation
  • Score and grade
  • Factory ID
  • Address details
  • Corrective Action Plan

The factory is to complete the CAP within 14 calendar days from the receipt of CAP. They are required to:

  • describe root cause, resolution, and explain detailed improvements that will be made
  • document the factory representative responsible for each improvement
  • document the required due date

**The CAP is to be emailed back to the Target auditor who performed the FA. The factory should be able to provide you the auditor’s email address.

The factory must correct any issues and implement the requested changes as soon as possible, and no later than the next FA date. **It is the Product Compliance Specialist’s job to remind the factory 2 months before the next FA occurs, and to make sure that all issues from the previous year’s CAP have been fixed. It is a good idea to make a calendar reminder so that it’s not forgotten**

Auto-Fail Questions

On the VFA, any question in red font means that it is an auto-fail question. If the factory answers “no” to any auto-fail question, the auditor can automatically fail the factory. See below for full listing of auto-fail questions: Factory_Evaluation_Auto_Fail_Question_Resource_Guide_Tool-PSQA

***If the VFA and FA results have over a 20% score variance, meaning either audit score is 20% higher or 20% lower than the other, the factory can incur a significant chargeback. If a factory scores themselves 80% or above, confirm with them that this score is correct, and remind them about the variance chargeback***

Social Compliance

The Social Compliance audit reviews the location’s compliance with Target’s Standards of Vendor Engagement (SOVE). During factory registration on Target POL, the factory must complete a Social Compliance self-audit form. At any time, an inspector may come to the factory to perform a Social Audit. See here for the latest edition of the Target Social Compliance Audit Manual.

**Please note: Social Compliance audits are unannounced, therefore there is not much preparation to be done. As stated above, make sure the factory posts in their factory the Standards of Vendor Engagement poster (in the local language) so that the auditor doesn’t take off points. See English version here, and Simplified Chinese version here.

How to Register a Factory on POL

See instructions from Target here.

Factories must be registered (as of Feb 2019) if Target is the Importer of Record.  (This means Direct Import to Target)

How to Unregister a Factory on POL

***If a factory is no longer producing Target-owned items (private label) for Target, Target Exclusive, or if a factory is no longer doing DI to Target, make sure to unregister the factory in POL after all PO’s have shipped to avoid a chargeback from Target. If they are not unregistered, Target’s Social Compliance team could potentially show up at the factory to conduct an audit, and we could receive a chargeback. Only factories that produce Target-owned items or where Target is the Importer of Record need to be registered in POL***

  1. Log onto POL
  2. Click “Applications” at the top
  3. Click “Vendor Management and Maintenance (VMM)”
  4. Click “Locations”
  5. Find the factory that you want to unregister and click on it:
  6. Click “Details”
  7. Click “Unregister Location”
  8. Verify that you want to unregister this particular factory.

Social Compliance Chargebacks

Target will issue a chargeback if the results are “At Risk”. See below for other chargeback instances: Social-Compliance-Chargebacks

Environmental Self-Assessment

Target requires that all registered factories in non-food/non-FDA regulated product categories complete an environmental self-assessment on the Higg Index website at least once every two years. All new factories must complete this as part of their Target Registration process. Ask the new Target factory to complete the registration form here. Per recent communication regarding the assessment, email the Higg Index support at support@apparelcoalition.org if the factory has not received their username and password within 24 hours of registering. See here for full instructions on how to complete the assessment.

Although Advantus is not required to complete an assessment, we still must pay the $85 annual license fee charge to have an account. After paying the fee, the emailed receipt must be forwarded to SACSupport@ems.Schneider-electric.com with the company/factory name and ID. Make sure the factories do this. See below for instructions in emailed receipt:

Target Frequency Risk Model (FRM)

In 2016, Target launched a PSQA Frequency Risk Model (FRM) program which is a risk-based approach to reward vendor’s factories for consistent performance across key quality and Responsible Sourcing measures. Factories that meet adn sustain Target’s performance criteria will benefit from reduced PSQA’s activities (product inspections and factory evaluations). Additionally, 2016 qualified factories will receive added benefits including the elimination of Business Award Handoff (BAH) meetings and shift to Target Production Readiness (TPR) Lite format for all programs (excluding children’s sleepwear).

Factories that receive a High rating will see no reduces PSQA activities.

Factories that receive a Medium to Low rating will see reduced PSQA activities.

Important Email Addresses

Updated on September 29, 2023
Was this article helpful?
Yes No

Related Articles