Target gets tough with vendors to speed up supply chain

Chicago

DISCOUNT retailer Target Corp is cracking down on suppliers as part of a multi-billion dollar overhaul to speed up its supply chain and better compete with rivals including Wal-Mart Stores Inc and Amazon.com Inc.

The sixth-largest US retailer by sales plans to tighten deadlines for deliveries to its warehouses, hike fines for late deliveries, and could institute penalties of up to US$10,000 for inaccuracies in product information, according to a letter sent to suppliers and obtained by Reuters and an interview with Target chief operating officer John Mulligan.

The moves, effective from May 30, are the first major steps that Target has taken since Mr Mulligan was appointed as CO…