Target Fill Rate (SIFR) Deductions Explained: Original vs Revised

Target Fill Rate is a compliance deduction charged when a vendor delivers fewer units than Target ordered. If your fill rate at the PO location level drops below 95 percent, Target applies a penalty of 5 percent of the cost of goods on the units it did not receive, with a minimum charge of $150 per violation.

The program is owned by Target's Supplier Performance Management (SPM) team, tracked through the Supplier Performance Management Dashboard in Greenfield, and disputed through Synergy. It runs on a strict clock: a two-week window to request an exemption, then a three-month window to dispute the chargeback. Miss either and the deduction is final.

What Is a Target Fill Rate Deduction?

A Target Fill Rate deduction is a compliance charge issued against a PO and location where the units received do not meet the ordered quantity within the measurement window. It measures whether you shipped what Target ordered, when Target expected it.

Fill Rate is a Supplier Performance Management metric, not an Accounts Payable shortage claim. That distinction is the single most important thing to understand about it:

• Fill Rate deduction: a performance charge handled by the SPM Compliance team, measured against the order

• Carton shortage (code A030): an invoice-level discrepancy handled by Accounts Payable, measured against the invoice

The two can arise from the same short shipment but are reported, researched, and disputed through entirely different systems. The performance goal is 95 percent. Ship below that at a PO location, and Target assesses the penalty on the units that missed.

How Target Calculates Fill Rate Penalties

The Fill Rate calculation is precise, and knowing it tells you exactly what you are being charged for.

Target's own worked example: if the revised order quantity is 80 units and the supplier ships 60, the violation is 5 percent of the cost of goods on the 20-unit gap.

The measurement window is the detail suppliers miss most. Target counts only units received within 7 days of the first receipt. Units that arrive after that window do not count toward the fill rate, even if the full order eventually shows up. A late second shipment can trigger a violation on units that were technically delivered.

Fill Rate Original vs Fill Rate Revised

Target measures Fill Rate against two possible order quantities, and every deduction is tied to one of them. Suppliers are held to compliance on either metric, or both.

Fill Rate Revised (FRR)

Fill Rate Revised measures how well you met the revised order quantity at the PO location level. When an order is cut or changed after the initial PO, Target executes the change through EDI 860 (Target-confirmed cuts) or EDI 870 (vendor-initiated cuts), and FRR measures your delivery against that updated number.

The vendor expectation is to ship 100 percent to the revised quantity communicated on the EDI 850, 860, or 870. All quantity changes must be communicated to Target shortly after PO approval, before appointments, VRS entries, or EDI 856 ASN data are sent.

Fill Rate Original (FRO)

Fill Rate Original measures against the quantity on the initial order. This is the metric to scrutinize when an order should have been cut but was not. If you proactively communicated a cut and Target failed to execute it, an FRO violation calculated against the uncut original quantity is a valid candidate for reversal.

How Target Cuts Are Communicated

Because Fill Rate is measured against the order quantity, correctly communicating order changes is the primary way to prevent invalid violations. Target recognizes two methods.

Cut sheets: the vendor initiates a cut through an Excel document emailed to Target. Target executes the cut and confirms the change via EDI 860. Each cut sheet line needs the PO, location, item, original quantity, new quantity, and reason for the change. Monitor EDI 860 to validate the change was applied.

EDI 870: A subset of Target vendors are EDI 870 capable and can submit cuts directly. Key rules:

• EDI 870 can only decrease PO quantity, never increase it

• Promotional orders (marked by the purpose code in the EDI 850 SAC segment) cannot be modified by EDI 870; a cut sheet must be used instead

• Common Pre-Distro (CPD) vendors must use EDI 870 to reduce quantities

The timing rule is the same for both methods: cuts must be communicated before the PO is scheduled or routed. A cut requested after routing does not protect you from a violation.

The Fill Rate Compliance Timeline

Fill Rate deductions move through a fixed sequence, and each stage has its own window. Missing a deadline forecloses the next option.

1. Violation period (2 weeks): the violation appears on the Violation Summary Report. During this window, you can request an exemption through Request Support in Partners Online
   

2. Chargeback status: once the exemption window expires, the violation converts to a chargeback and appears on the Compliance Research Report
   

3. Dispute period (3 months): from chargeback status, you have three months to dispute in Synergy, with the last valid day shown in the Dispute Expiration Date column
   

4. Expiration: a dispute submitted after the expiration date will not be reviewed and will be denied

The difference between an exemption and a dispute is timing. An exemption is requested during the first two weeks, before the charge lands. A dispute is filed after the charge becomes a chargeback. Both require the same underlying justification through different channels.

Where to Track Fill Rate Performance

Fill Rate lives in the Supplier Performance Management Dashboard (SPMD), accessed through Apps & Reports in Greenfield on Partners Online. Target expects weekly monitoring so issues can be caught before they convert to chargebacks. Three reports drive the workflow, and each attaches to a different stage.

The Compliance Research Report is the one that carries the Dispute Expiration Date column, so it tells you how much time is left on any given chargeback.

Valid Scenarios for a Fill Rate Reversal

Target publishes the specific situations where a Fill Rate deduction can be reversed, each with its required documentation.

Target ordering error not corrected: The order quantity was much higher than intended, but you notified Target, and the Fill Rate Original quantity was never revised.

Requires: PO-specific email showing you proactively communicated the cut before scheduling or routing, plus the Compliance Research Report.

Cut communicated but not executed: You sent a cut proactively before scheduling or routing, but Target did not execute it.

Requires: the PO-specific email, a VRS screenshot or Ryder/Docklink confirmation to validate timing, plus the Compliance Research Report.

Product received under the wrong PO: The DC received your product against the wrong PO.

Requires: a Ryder/Docklink confirmation showing correct scheduling, the Bill of Lading for the PO location, a Delivery Receipt showing the wrong PO received, plus the Compliance Research Report.

Non-carry-forward items rolled onto the order: The PO rolled with items no longer active or not yet available, and you flagged it before scheduling.

Requires: PO-specific email notifying Target, plus the Compliance Research Report.

Shortage claim now settled: A Fill Rate dispute was previously denied because of an outstanding shortage claim. Once you settle the claim with Accounts Payable, you have 30 days from the settlement date to resubmit.

Requires: the DMCB number proving settlement and the original dispute case number.

Shipped full, multiple receipts in window: You shipped 100 percent of the revised quantity across multiple shipments received inside the 7-day window.

Requires: the Compliance Research Report showing Current Received Quantity equals Revised Ordered Quantity, plus a Bill of Lading per shipment (collect/OTS) or a Target Delivery Receipt (prepaid/OTA).

Freight misrouted by Target's consolidator: You shipped full, but Target's consolidator routed collect freight to the wrong DC, causing an overage at one and a shortage at another.

Requires: the Detail Report for all locations calling out where the missing cartons landed, the Master BOL and supplement, plus the Compliance Research Report.

How to Dispute or Request an Exemption

The path depends on where the deduction sits in the timeline.

Requesting an Exemption (within 2 weeks)

Create a ticket through Request Support in Partners Online under Accounts Payable > Payment > Chargebacks > Exemption Requests. Then:

1. In the comments, include vendor name, vendor number, PO number, Target location, violation dollar amount, and why the violation is invalid

2. Attach the Violation Summary Report and supporting documentation

3. Submit

Disputing a Chargeback (within 3 months)

Submit a dispute in Synergy. Then:

1. Enter the VC chargeback number in the Document field (it must include "VC") and briefly explain why the chargeback is invalid

2. Enter the dollar amount, department, PO number, and location

3. Attach the Compliance Research Report and supporting documentation, then submit

One critical constraint applies to both paths: internal Target team members, including Inventory Management, Buyers, Planners, and Sourcing Managers, do not have authority to grant an exception or waive a Fill Rate requirement. They can explain what Target-driven issue caused the problem, but the SPM Compliance team makes the final call and reserves the right to deny any exemption or dispute.

Automate Target Fill Rate and Deduction Recovery With iNymbus

Fill Rate deductions carry a hard two-week exemption window and a three-month dispute clock, each requiring a specific Greenfield report matched to specific shipping documentation. Tracking that across every PO and location, then filing through Request Support or Synergy before the window closes, is heavy manual work at volume.

iNymbus automates it. The platform pulls Target Fill Rate and deduction data, matches each violation to the required Compliance Research Report, BOLs, and Delivery Receipts, and files exemptions and disputes through the right channel inside the window.

Suppliers using iNymbus dispute Target deductions up to 30 times faster than manual processes, without the analyst hours spent matching each Fill Rate violation to its proof before the clock runs out.

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