Vendor Performance Analysis
Target uses multiple data points to analyze the performance of our vendors, who are held accountable for responsible sourcing performance in the facilities that they use for Target owned brand production. Audit results are one of the metrics we use when assigning performance levels to vendors. These results reflect their risk level.
Patterns of Needs Improvement or At-Risk results, or any type of non-compliance, will result in a high-risk performance level. We publish a monthly Vendor Performance Report, which provides team members with the information they need to make educated sourcing decisions. Vendor Performance Overview (VPO) is an internal tool we created to provide an in-depth review and analysis of a vendor’s performance across multiple areas of social compliance. The analysis includes a compilation of recent audit results, facility registration accuracy and the ability to provide complete and acceptable corrective action plans. The VPO score helps us to identify areas of opportunity for each vendor, which we discuss with them.
Vendor Probation and Termination Process
If a vendor shows a pattern of producing product in facilities that do not meet our standards, they will be put on probation for up to one year. During that time, they will work closely with our headquarters social compliance team until they have elevated their internal program. During probation, we will monitor them closely and require that all audit results demonstrate facility compliance. If they are not able to consistently meet these requirements, we will remove them from our vendor matrix.
We also will terminate a relationship with a vendor or facility if they attempt to alter audit violations in any way, or if they mistreat our team members or representatives. Mistreatment includes, but is not limited to, behavior such as raising their voices in an inappropriate manner, threatening or causing physical or other type of harm, or preventing a team member or representative from leaving the facility.
Vendor Training and Education
We provide a wide variety of social compliance training materials to vendors, including orientation at headquarters and overseas locations and web-based training programs, which include topics like preventing forced and underage labor, human resources management systems, controlling working hours and health and safety management. Some materials are available in multiple languages. We are continually developing and updating training resources to educate our vendors and elevate their awareness.
In addition to training resources, we give vendors access to tools on our vendor website to help them elevate their social compliance performance, including our full- and self-audit forms.
On-Site Factory Training and Consulting
On-Site Factory Training and Consulting is designed to enhance vendors' responsible sourcing programs and educate them on best practices. Select vendors work in partnership with Target’s responsible sourcing team, which reviews their programs and processes and conducts shadow audits and training. We also provide vendors with access to our auditing tools and manuals and visibility of their full audit results. The goal of the program is to achieve sustainable improvements in compliance and working conditions.