EDI Compliance Requirements for Target Vendors

Target's EDI compliance requirements ensure suppliers meet strict standards for on-time delivery, fill rates, ASN accuracy, and barcode quality. With the Perfect Order Program launching May 4, 2025, Target is expanding compliance beyond timing to include physical barcode accuracy and shipment accuracy. This guide covers everything Target vendors need to know about EDI compliance in 2025.

Overview: Target's Supplier Performance Management

All Target vendors are automatically enrolled in the Supplier Performance Management (SPM) program. Target monitors compliance through the Supplier Performance Management Dashboard (SPMD) available in Partners Online (POL) at www.partnersonline.com.

Target's compliance program is divided into several key categories:

• OTFR (On-Time Full Release): On-time delivery and fill rate compliance
• ASN Availability & Accuracy: Error-free ASN submission before in-yard date
• Perfect Order Program (May 2025): Barcode accuracy, shipment accuracy, item accuracy

Required EDI Transaction Types

Target requires the following EDI documents for vendor transactions:

1. EDI 850: Purchase Order

Target sends the 850 to vendors with order details including:

• Purchase Order Number (BEG03 segment): Unique PO identifier to reference in all subsequent transactions
• Line Items (PO1 segments): SKUs, quantities, unit prices
• Ship-To Location: Target DC or store address
• Delivery Date: Expected delivery date for OTFR compliance
• SSP (Store Ship Pack) Information: Packaging requirements that must match the 856 ASN

2. EDI 856: Advance Ship Notice (ASN)

The 856 ASN is required for 100% of purchase orders. Target expects error-free ASNs sent before the in-yard date and time for the shipment.

Key 856 Requirements:

• BOL (Bill of Lading): Must appear in the correct format and EDI segment (REF segment)
• SSCC Barcodes (MAN segment): Required for carton-level tracking
• Item Accuracy: Item data in ASN must match the 850 PO exactly
• SSP Match: Store ship pack information on the 856 must match the 850 PO
• Hierarchical Structure: Shipment → Order → Pack → Item levels

3. EDI 810: Invoice

Vendors send the 810 invoice to Target after shipment with:

• Invoice Number: Unique invoice identifier
• PO Reference (BEG03): Must match the PO number from the 850
• Line Items and Charges: Item quantities, unit prices
• Payment Terms: Net payment terms

4. UCC-128 Barcode Shipping Labels

Target requires UCC-128 (GS1-128) barcode labels on all cartons and pallets. These labels contain SSCC codes that match the MAN segment in the 856 ASN.

Perfect Order Program (Launching May 4, 2025)

Target's Perfect Order Program launches on May 4, 2025, and expands beyond timing and fill rate to include metrics that help ensure proper receiving of orders at Target facilities. Target expects 100% of shipments to arrive with a correct ASN—on time, complete, and accurate.

Perfect Order Components

The Perfect Order Program includes four key accuracy metrics:

1. ASN Availability (Same as Current Requirements)

Target must receive an error-free EDI 856 for 100% of purchase orders before the in-yard date and time.

2. Shipment Accuracy (NEW)

The Bill of Lading (BOL) number must appear in the correct format and EDI segment in the 856 ASN. The BOL must match physical shipping documentation.

3. Item Accuracy (NEW)

Item data transmitted in the ASN must be accurate and match the purchase order. This includes:

• UPC codes match PO
• Quantities match PO
• SSP (Store Ship Pack) information matches PO

4. Physical Barcode Accuracy (NEW)

Items arriving at Target DCs must have scannable barcodes to enable accurate receiving. Target will assess if:

• Barcodes are present on all cartons
• Barcodes are readable by warehouse scanners
• SSCC codes on labels match SSCC codes in the 856 ASN

Penalty: $0.75 per carton that has a missing or unscannable barcode.

ASN Compliance Requirements and Penalties

ASN Penalties: Before vs. After May 4, 2025

*If Target rejects or can't acknowledge the 856 (i.e., "Not in 'A' status"), there is no minimum penalty.

Common ASN Defect Reasons

ASN Missing

Definition: Target did not receive any error-free EDI 856 documents for the shipment appointment.

How to Fix:

• Send the 856 ASN as soon as the shipment is tendered to the carrier
• Monitor EDI 997 functional acknowledgments for rejections and fix errors immediately
• Use PlainEDI's 856 to CSV converter to verify ASN data before sending

ASN Late

Definition: Target received the EDI 856 after the in-yard date and time for the scheduled truck. Target provides a one-hour grace period.

How to Fix:

• Send the 856 ASN at least 2 hours before the scheduled in-yard time
• Set up automated ASN transmission in your EDI system to send immediately upon shipment confirmation
• Coordinate with your carrier to ensure accurate in-yard times

SSP Mismatch

Definition: Store ship pack (SSP) information on the EDI 856 doesn't match the EDI 850 PO.

How to Fix:

• Extract SSP information from the 850 PO before creating the 856 ASN
• Verify that packaging details in the 856 match the 850 requirements exactly
• Use PlainEDI's 850 to CSV converter to extract SSP requirements from the PO

Quantity Mismatch

Definition: There's only one SSCC carton label but item quantity indicates more SSCC labels should exist, or vice versa.

How to Fix:

• Verify carton counts before creating the 856 ASN
• Generate unique SSCC codes for each physical carton
• Include all SSCC codes in the MAN segment of the 856 ASN

Target EDI 856 ASN Structure

Understanding the structure of Target's EDI 856 ASN helps vendors create compliant shipment notices.

SSCC Barcode Requirements (MAN Segment)

When an SSCC is sent for every carton in a Pick Pack structure, the value equals the total number of units (eaches) tied to the unique SSCC sent at the corresponding Pack level.

HL*1**S~              (Shipment level)
HL*2*1*O~             (Order level)
PRF*PO123456~         (PO reference)
HL*3*2*P~             (Pack level - carton)
MAN*GM*00123456789012345678~  (First carton SSCC)
MAN*GM*00123456789012345679~  (Last carton SSCC if range)
HL*4*3*I~             (Item level)
LIN**UP*012345678901~ (UPC code)

MAN Segment Rules:

• MAN*GM: Marks and Numbers segment with GM qualifier for SSCC
• MAN02: First carton barcode (SSCC) of an item
• MAN03: Last carton barcode (SSCC) of the same item (if sending a range)

Pack Level Structure

For Target, the packaging code has specific requirements:

• Part 1: Must always contain the alpha code CTN (carton)
• Part 2: Comprised of the final 2 positions and must always be numeric

Example: CTN01, CTN02, CTN03 (where 01, 02, 03 are sequential carton numbers)

BOL Format (REF Segment)

The Bill of Lading (BOL) number must appear in the REF segment with the correct qualifier:

REF*BM*1234567890~  (BM = Bill of Lading Number qualifier)

Shipment Accuracy Requirement (May 2025): The BOL format must be correct and match physical shipping documentation.

OTFR (On-Time Full Release) Requirements

Target's OTFR (On-Time Full Release) program ensures suppliers fulfill orders according to the purchase order (EDI 850) in the requested amount of time.

On-Time Delivery

Requirement: Shipments must arrive on or before the delivery date specified in the 850 PO.

Penalty: 3% COGS fine for all non-compliant items (late deliveries).

Fill Rate Standard (Effective August 4, 2024)

Requirement: Vendors must maintain a 95% fill rate, meaning 95% of all ordered quantities must be shipped.

Penalty: 5% COGS penalty on unfilled items.

Example: If Target orders 1,000 units and you ship only 900 units (90% fill rate), Target charges a 5% COGS penalty on the 100 unfilled units.

Barcode Quality Requirements (Perfect Order Program)

Starting May 4, 2025, Target will assess Physical Barcode Accuracy for all shipments. Items arriving at Target DCs must have scannable barcodes to enable accurate receiving.

Barcode Quality Standards

• Barcode Presence: All cartons must have a GS1-128 barcode label with SSCC
• Barcode Readability: Barcodes must be scannable by warehouse scanners (no smudging, tearing, or print quality issues)
• SSCC Match: SSCC codes on physical labels must match SSCC codes in the 856 ASN (MAN segment)
• Label Placement: Labels must be placed in a scannable location on the carton (typically top or side)

Barcode Penalty

Penalty: $0.75 per carton for missing or unscannable barcodes.

Example: If you ship 1,000 cartons and 50 cartons have unreadable barcodes, Target charges $0.75 × 50 = $37.50 penalty.

How to Avoid Barcode Penalties

• Use high-quality thermal label printers with GS1-certified label stock
• Test barcode scan quality before shipping using a handheld scanner
• Ensure SSCC codes in the 856 ASN match printed labels exactly
• Protect labels from damage during transit (avoid placement near corners or edges)

Monitoring Compliance: Supplier Performance Management Dashboard

Target provides the Supplier Performance Management Dashboard (SPMD) in Partners Online (POL) for vendors to monitor compliance metrics.

Key Metrics in SPMD

• OTFR Score: Percentage of orders delivered on-time and in-full
• ASN Availability: Percentage of shipments with error-free ASNs sent on time
• Fill Rate: Percentage of ordered quantities fulfilled
• Barcode Accuracy (May 2025): Percentage of cartons with scannable barcodes
• Compliance Deductions: Summary of penalties and chargebacks

Target Compliance Goals

Vendors should aim for:

• On-Time Delivery: 100%
• Fill Rate: ≥ 95%
• ASN Availability: 100%
• Barcode Accuracy: 100% (after May 2025)

How PlainEDI Helps with Target Compliance

PlainEDI helps Target vendors verify EDI files before sending to avoid costly penalties:

1. Verify 850 Purchase Orders

Convert Target 850 POs to CSV to extract:

• PO numbers and delivery dates
• SSP (Store Ship Pack) requirements
• SKUs, quantities, and unit prices

2. Validate 856 ASNs Before Sending

Convert Target 856 ASNs to CSV to verify:

• SSCC codes match physical labels
• BOL format is correct
• Item data matches 850 PO
• SSP information matches PO requirements

3. Check 810 Invoices

Convert Target 810 invoices to CSV to verify:

• PO references (BEG03) match original orders
• Line items and charges are accurate
• Quantities match shipped quantities from 856 ASN

Best Practices for Target Compliance

1. Send ASNs Early

Send the 856 ASN at least 2 hours before the scheduled in-yard time. Target provides a 1-hour grace period, but sending early prevents late penalties if there are transmission delays.

2. Verify Three-Way Match

Before sending the 810 invoice, verify that the 850 PO, 856 ASN, and 810 invoice match exactly:

• PO numbers match across all documents
• Quantities: Shipped (856) ≤ Ordered (850), Invoiced (810) = Shipped (856)
• Prices: Invoice prices (810) match PO prices (850)

3. Test Barcode Scan Quality

Before shipping, scan a sample of barcode labels to ensure they're readable. This prevents $0.75/carton penalties after May 2025.

4. Monitor SPMD Daily

Log in to Partners Online daily to review your Supplier Performance Management Dashboard. Identify issues before they result in penalties.

5. Maintain SSP Accuracy

Always extract SSP (Store Ship Pack) requirements from the 850 PO and ensure your 856 ASN packaging details match exactly.

Summary: Target Compliance Checklist

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