Supply Chain

TOMS has opened manufacturing factories in China, Argentina, and Ethiopia, and plans to open another location in Brazil. These factories are audited by third parties to ensure that workers are being treated fairly. After goods are finished, they are sent to the warehouse in California.

The shoes are then distributed to consumers, retailers, and children in need. Over 500 retailers around the world carry TOMS shoe collections, and are able to purchase their bulk of shoes at cost from TOMS. Which in turn, are able to turn a profit as well as support the TOMS One for One Movement. All shoes that retailers purchase are directly shipped to the retailers as TOMS does not operate on a consignment basis.

After distributing the shoes to the consumers, TOMS collaborates with nonprofits to identify children in need.  TOMS work with multiple giving partners such as the Partners in Health to distribute shoes to children in Haiti. TOMS donates shoes to many children in countries that include Argentina, Guatemala, Rwanda, Zimbabwe, and many more. When shoes are distributed to the communities, they are referred to as Shoe Drops.


Suggested Improvement:
With TOMS' business growing at a fast pace, they could ultimately face problems with shipment and communication if they decide to expand their market into further more countries outside of the US. In which case, it may be wise to create a separate distribution center just for international orders. This improvement would offer more space, organization, and better communication between TOMS and international businesses.


Citation:
TOMS One for One Movement. Rep. Daniels Funds Ethnic Initiative University of Mexico, n.d. Web. <http://danielsethics.mgt.unm.edu/pdf/TOMS%20Case.pdf>.