Report: Target Raising Fines To Enhance Supply Chain

Housewares and home product suppliers selling to Target will soon be facing higher penalties for late deliveries and product inaccuracies as part of an effort to speed up its supply chain, Reuters reported on Wednesday, May 4.

Citing information from letters Target sent to vendors along with information from a top executive with the retailer, the Reuters report said the fines could be as much as $10,000 per shipment. The increased fine structure is effective May 30 as part of a plan being implemented by the retailer’s COO John Mulligan to remedy issues with Target’s supply chain.

“These steps are a key part of becoming more reliable,” Mulligan said.

The report noted that product suppliers in divisions including apparel, home and electronics will have to comply with the new rules beginning in August.

Target’s move follows a recent decision by Walmart to tighten its delivery window for product from one to four days of the target date to one to two days of the target date.