NEW YORK (TheStreet) -- Target (TGT) - Get Target Corporation Report stock is up 0.11% to $80.08 in mid-morning trading on Wednesday after the Minneapolis-based retailer informed suppliers of tougher requirements in an attempt to improve its domestic supply chain, according to Reuters.
Effective May 30, the company will tighten delivery deadlines, increase fines for late deliveries and penalize suppliers for incorrect product information, Reuters reports, citing a letter sent to Target's suppliers.
"These steps are a key part of becoming more reliable," COO John Mulligan told Reuters.
The changes are meant to improve product availability in stores, control costs, maximize sales and better compete with other retailers, such as Wal-Mart Stores (WMT) and Amazon.com (AMZN).
Late delivery fines will increase to 5% of the total order cost, compared with the previous fine of 1% to 3% of the order cost. Penalties for inaccurate production information will vary, but could be up to $10,000, Reuters added.
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Separately, Target has a "buy" rating and a letter grade of A at TheStreet Ratings because of the company's notable return on equity, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth and compelling growth in net income.
You can view the full analysis from the report here: TGT
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.