Vendor Pre-Screening Checklist

Objective & Scope: This document lists items for discussion and consideration when
evaluating a vendor in Merchandise Sourcing. Review this list prior to recommending vendors for
any new business programs and/or integration into the Vendor Matrix.

Vendor Name: ____________________________________________________________

Initial Engagement / Management Discussion Points:

□ Walk showroom / facility. Perform initial evaluation of product offering.
□ If facility is factory, will this factory be able to pass (in your opinion):
o Factory Evaluation (i.e. does vendor have good baseline QA? Raw material
inspection (if applicable); In-line inspections that consist of both measurement and
workmanship, DUPRO's and FRI's on finish product).
o Compliance Audit (i.e. appropriate working conditions, no child labor, clear fire
exits…etc.)?
o Note: the above 2 items are in your best opinion only. Sourcing is not expected
to know all the details involved in a Factory Evaluation or Compliance Audit.
□ How is the company positioned strategically (i.e. Low cost provider, trend / fashion…
etc.)?
□ What is the vendor’s approximate annual (global) sales volume?
□ How long has the company been in business?
□ Is the vendor a Trading company?
□ Does the vendor have proper staffing to manage the Target account?
o Does the vendor have US based representatives or sales team?
o Does the vendor have people who can speak English?
□ Does the company own its own factories? How many and locations (if appropriate)?
□ Does the vendor operate in any restricted countries (information is posted on POL).
o Note: On Partners Online: Guidelines & Info  requirements & procedures 
Legal/Compliance  ALL VENDOR-Global Compliance  Restricted Countries List
□ What computer capability does the vendor / factory have to run business (ie. internet
access, EDI, email, print barcodes….etc.)?
o Note: internet access for US based web-browsing 512K – 1MB of dedicated
broadband capacity is typically sufficient.
Familiarity with US Business Standards:
□ Has this company ever done business with US retailers?
□ If new vendor, evaluate the vendor’s ability to meet delivery expectations.
□ Is the vendor familiar with typical US business standards for vendor engagement?
o Does the vendor currently have relations with US based customers?
o Who? What volume?
o Direct volume or Domestic Importer?
 □ Does this vendor have the appropriate level of PLI (Product Liability Insurance) for the
products being produced?

Core Competencies - Product Capability and Expertise:

□ What is the vendor’s core specialization in a particular product category / line?
□ Can the vendor work with the product materials identified for the program / sourcing
request?
□ Does the vendor subcontract production or portions of the production process?
□ Does the vendor product offering fit the requested good/better/best categorization (...if
appropriate what OPP (Opening Price Point) products are offered)?

Design Capabilities:
□ Does the vendor have design staff appropriate for product / program / niche being
sourced?
□ Does the company have ability to do trend-forward design / fashion merchandise, and
gather market intelligence about U.S. trend?
□ What types / examples of product development can the vendor present?

Price Range:
□ Evaluate the vendor’s ability to meet the target price for products? Can the vendor
provide examples of other customer pricing that is similar to the Target price range for this
sourcing request?
□ What does the vendor do to monitor and/or guard against material increase in prices (i.e.
monitor government regulations, carry surplus inventory, hold supplier negotiations
events…etc)?

Production Capacity and Control:

□ What is the vendor’s total capacity plan for the fiscal year? How much capacity is
available / unbooked / unallocated?
□ Visit factory(ies) if necessary.
o Determine if factory has “necessary equipment” to achieve good quality product
(i.e. light box for color match, metal detector for plush toys, etc).
o Note: Sourcer should use best judgment / experience understanding “necessary
equipment” (Sourcer is not expected to know all necessary production equipment).
o Note: Factory must have Target approved Light box used in proper way.
□ Does the vendor / factory have a quality program / system in place?
□ Does the company have its own internal QA control or factory certification/inspection?
□ Does the vendor have a relationship with Third party testing partners (i.e. Bureau
Veritas/MTL, Intertek, etc?)
Other Special Items (as appropriate):
□ Does the vendor have experience with US standards requirement related to the product
being sourced (i.e. UL, FDA, ASTM, JPMA……)?
□ Is the vendor familiar with importing regulation issues (i.e. quotas, tariffs, anti-dumping…)
for the product being sourced?
□ Are there any hazardous materials (i.e. touch up paint, chemical cleaners…) in the
program the Vendor will have to manage. Is the Vendor familiar with MSDS (Material
Safety Data Sheets) documents and declaring hazardous materials for transportation?

Candidate Vendor Preliminary Review Questions:

NOTE: This information must be sent to HQ IF you decide to submit this Candidate
Vendor for addition to the Global Hardlines Vendor Matrix.

1. Vendor Name.

2. Contact Information for at least 2 people within Vendor’s organization to be used to

allow vendor access. Provide Name and email address.

3. Reason to Add: Gap, Niche (unique need), Design, Development, Other. Please
explain selection.

4. Product Category, Product Type, G/B/B Designation

5. Annual Sales – FC $US

6. Capacity – FC $US

7. Top US Customers

8. Production Country(s)

9. Summary of preliminary costing/samples evaluation

10. Core Competency – Product Specialties

11. Material Specialties

12. Pre-screening checklist confirmation