Toms is a company known for its "one for one" business model, where it donates a pair of shoes to a child in need for each pair sold. The document analyzes Toms' supply chain and corporate strategy. It describes Toms' efficient supply chain, which uses strategic partnerships to distribute donated shoes and outsources production. The summary suggests one way to improve the supply chain would be to add warehouses to cut delivery times and inventory costs. It also discusses two issues of concern for Toms - environmental impacts from raw materials and social issues around working conditions in their supply chain.

1. Module 2 Assessment:
Business Operations & Sustainability
Dillan Patel

2. 2
Student ID: 24473163 Name: Dillan Patel Section number: 104
1. Choose a product or service that you have used/tested before and that you would like to analyze:
1.1 Product/service name: Toms Shoes
1.2 The name of the company who designs or provides it: Toms
1.3 A brief description of the company (one paragraph, about 50 words):
Toms is a company that primarily sells two products, sunglasses and shoes. Toms shoes have
rapidly spread throughout the world, not only for their style but also for their company mission statement /
motto. Toms one for one policy means for every pair of shoes sold, they give one to a child in need
around the world. The company’s unique structure mixture of a for-profit and non-profit organization
makes it widely popular while still being able to give back to those in need. Toms maintains partnerships
with over 75 non-profits that help distribute shoes to those in need to make Toms the globally dominant
philanthropist it is today.
2. Explain why you chose the specific product indicated in previous question and how it relates to your
personality (one paragraph):
I chose the product above (Toms shoes) for two main reasons; one that the company has a very
strong belief in what it is achieving. This company is pushing the boundaries and lines drawn between
for-profit and non-profit and setting a very high bar for all corporations across multiple industries. I love
what Toms stands for and the direction the company is headed. Second I own the shoes and I love the
multiple designs and styles. The shoe is so simple yet so unique, which I believe to some extent, is similar
to my personality. For these reasons, I chose Toms Shoes.
3. Describe the corporate strategy (of your product/company) (one paragraph, less than 100 words are
expected).
Corporate strategy focuses on four key components: Environmental Scanning, Core
Competencies, Core Processes, and Global Strategies. Toms and it’s corporate strategy begins with
environmental scanning. Here Toms realizes trends in the social and even more specifically fashion
world. Tom’s founder knew and believed that in order to produce a successful company, it had to have a
strong connection to a cause. Toms applied the “good company” image through all its aspects in the
supply chain including work force, facilities and entire system. They actively fight for labor laws, against
human trafficking, enforcing a minimum work age and holding factories to higher ethical standards. To
see more about what specific issues Toms fights within its supply chain, visit
http://www.toms.com/media/docs/3477/TOMS_Supplier_Code_of_Conduct.pdf. By implementing these
core values Toms has created a positive aura that has boosted sales drastically. By giving shoes to
children in second and third world countries, Toms has formed strategic partnerships that strengthen
global relations opening doors for Toms to widen revenue streams. Overall the company seems to have
formed a very solid and efficient corporate strategy that intertwines the for-profit with non-profit
strategies and values.
References on the page:
Lecture 1 & 2 on Sustainability and Strategy
‘Pg 8-9 of Module Textbook
http://www.toms.com/media/TOMS_Giving_Report_2013.pdf
http://www.toms.com/corporate-responsibility/l

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4. What do you think are the main competitive priorities of your selected product?
Cost or Quality or
Time or Flexibility
(see Table)
Definition Processes consideration Examples for Toms
shoes:
Quality: Top Quality Delivering an
outstanding service or
product
To deliver top quality, a
service process may
require a high level of
customer contact, and
high level of
helpfulness, courtesy,
and availability of
servers. It may require
superior product
features, close
tolerances and greater
durability from a
manufacturing process
Toms corporation
screams top quality from
all portions of its supply
chain. Toms are some of
the most durable long
lasting pair of shoes in
retail. Selling at a cost
around $10 more than
the average cost of
shoes, Toms is able to
attract consumers from
all ends of the economic
spectrum. Toms
manufacturing system
holds some of the
highest factory and
employee standards. The
company does not mind
paying extra for strong
and motivated labor (as
opposed to child labor
or under the table below
pay), which in turn
brings up product
quality. With these
processes and use of
quality raw materials,
Toms is able to produce
a reliable quality
product to table for
consumers.
Quality: Consistent
Quality
Producing services or
products that meet
design specifications on
a specific basis
Process must be
designed and monitored
to reduce errors, prevent
defects and achieve
similar outputs
overtime, regardless of
“level” of quality
Toms (much like
converse) has a very
basic style. The
simplicity of the style in
shoe opens doors for
consistent quality
throughout the supply
chain. By maintaining
an efficient factory
system, enforcing labor
laws, and keeping a
consistent simple

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design, Toms is able to
consistently produce
products of very similar
if not precisely identical
quality.
Flexibility:
Customization
Process with
customization strategy
typically have low
volume, close customer
contact and an ability to
reconfigure processes to
meet diverse types of
customer needs
Processes with a
customization strategy
typically have low
volume, close customer
contact, and an ability to
reconfigure processes to
meet diverse types of
customer needs
Toms like many other
companies in today’s
market have created a
manufacturing system
that allows for mass
customization. The
shoe’s basic design
allows for wide variety
when it comes to color
scheme, style, texture
etc. Toms custom shoes
are a huge part of the
revenue stream for the
company and thousands
of units are sold each
month with their own
distinct character /
personalized touch.
Toms is a company that focuses on very few competitive priorities, mainly the three above (Top
quality, Consistent Quality, Customization). Toms shoes are similar to other shoes in the industry,
especially converse in the sense of its simplicity. Tom’s style allows for a very basic manufacturing
system. With the consistent influx of raw materials to the factories Toms closely works with, consistent
quality items are made and distributed globally. Tom’s management closely monitors things like
employee safety, product quality and quality consistency to ensure a reliable product on the retail shelf.
With the simple design and profit not a main concern for the company, Toms is able to create a top
quality product that can be marketing and sold to individuals on all ends of the economic spectrum. By
creating a top quality product and branding the company with philanthropic affiliations, Toms has
attracted several key figures in society including musicians, artists, actors, and pop culture icons. Toms
ensures customer satisfaction and members of the Toms customer service team are available 7 days a
week for phone and web chat interaction. The small things across the supply chain for Toms ultimately
lead in solid customer relations and a top quality product widely desired. The shoe’s basic design allows
for wide variety when it comes to color scheme, style, texture etc. Toms custom shoes are a huge part of
the revenue stream for the company and thousands of units are sold each month with their own distinct
character / personalized touch.
References: http://toms-mar100.blogspot.com/2012/02/toms-shoes-company-is-driven-by-single.html
http://www.toms.com/faq/l
Text book pages 11-13
http://www.siliconprairienews.com/2010/02/toms-shoes-founder-blake-mycoskie-discusses-social-
entrepreneurship

5. 5
Below are a few examples of Mass Customization as explained in the question above to get a better image
on how this customization takes place in the customer’s eyes:
5. What may be the main inputs required to manufacture and/or deliver the product/service?
Present and explain a diagram similar to the one given in Figure 2 (process and operations)
Toms shoes has a very simple yet effective supply chain that heavily relies on information /
knowledge of sales. Toms’ “one for one” model can only be achieved if the corporation receives accurate
information. Toms has created a number of strategic alliances with non-profits in order to make this “one
for one” motto one that can be achieved through minimal cost. These non-profits take care of most
distribution of shoes to children in need. This allows for Toms to focus more on distributing their shoes to
one of the 2000+ retail stores across the globe. From its three core factories in Argentina, China, and
Ethiopia, Toms is able to sent out over a million pairs of shoes per year to warehouses across the globe.

6. 6
A map is included below of the locations of Toms’ factories along with the list of countries they are
currently distributing to or giving back to:
This map is included to give a bigger picture view on the scale Toms must distribute in order to meet the
needs of both consumers and children requiring shoes. The map above shows factories in locations
Argentina, China, India and Ethiopia.

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Below is a recreating process view for Toms Shoes:
Inputs:
-Raw Materials: Organic Cotton,
Soy ink, recycled polyester, natural
hemp, recycled post consumer
waste
-Facilities: Four main factories
spread throughout the globe
(Ethiopia, China, India, Argentina).
Multiple distribution centers
throughout the globe
-Managers: These oversee company
policy and social issues abroad in
factories (see q 7 for more detail)
-Employees: Huge numbers of
workers in both factories and
distribution
-Equipment: Toms owns large
number of trucks for distribution
purposes, factories also contain
expensive equipment capable of
mass customization
-Partnerships with multiple non-
profit organizations (w/ access to
personnel, distribution etc.)
A) Process &
Operations
External Environment:
Two main process occur
resulting from both the
information gathered and the
output:
1) Consumers obtain products
from retail stores, local mall, etc
2) ***Child in need receives
shoe from Toms/charity (Look
at *** figure to understand how
this process takes place.
Outputs:
-“one for one”
-Distributed accordingly
to global warehouses
-For every one pair of
shoes sold to a consumer,
one must also be made for
a child in need in one of
the countries on the map
above.
Information Gathering:
-Crucial step for Toms in
particular, the company must
know how many pairs have
been bought in order to
maintain the one and one ratio.
-Data collection takes place
using computer system to
monitor sales.
-Data is processed and sent back
to manufactures and analysts in
order to monitor supply chain
success.

8. 8
A) Inside Process and Operations:
Inputs
are
gathered
• Raw
materials
are
taken
from
local
and
global
regions
and
shipped
to
mani
Factories
Process
Resources
• Both
assembly
line
style
and
mass
customiza>on
style
machies
produce
outputs
Informa>on
sent
to
HQ
(CA)
and
processed
• Number
of
shoes
created
in
factory
sent
to
CA,
where
it
is
processed.
Here
they
decide
where
shoes
will
be
donated
Factory
recieves
info
and
makes
shoes
for
the
cause
• shoes
are
gathered
and
sent
out
to
warehouses
or
***
References: Gsi Section PowerPoint (ZARA case)
http://www.toms.com/our-movement/l
http://www.fastcoexist.com/3027184/the-toms-shoes-model-taken-to-the-extreme-
one-for-one-homes#2
http://irps.ucsd.edu/assets/001/503681.pdf

9. 9
6. Identify the strategic importance of supply chain design for your product or service. Is this an efficient
or a responsive supply chain? What could you do to improve it and make it either more efficient or
responsive? Explain your answer (one paragraph)
The strategic importance of the supply chain for this product is crucial. Toms shoes are not only
distributed to the 2000+ retail stores globally, but also to over 60 countries across the globe, most of
which have no major warehouses or ports. For this reason the supply chain of Toms is crucial to its
success and its sustainability. Toms supply chain is both responsive and efficient although it probably
leans towards efficient. Toms is responsive in two main ways, 1) through processing orders of mass
customization. Tom uses the assemble-to-order process strategy when it comes to filling these customer
orders (Over 30% of orders come customized from online website). To meet these demands Toms must
have a somewhat responsive supply chain. 2) It is responsive because of its data collection / information
capabilities. For every pair of shoes Toms sells, the must also give a pair to a child in need. This means
accurate numbers on sales must be kept at all times to ensure the company follows its mission statement
and maintains it’s branding. However I believe the supply chain overall is more efficient in the sense of
its outsourcing, distribution and use of strategic partnerships. Toms does not waste money on distribution
of these shoes to children in need. Instead they utilize their partnerships (70+ globally) including these
non-profits resources to distribute the shoes globally. By using these partnerships Toms saves hundreds of
thousands on distribution costs while still maintaining the company’s mission statement: one for one.
Because Toms does not waste its resources on distribution to areas of low income, they can spend on
creating an efficient distribution system to their 2000+ retail stores. The company uses local materials
near factors to cut elapsed time between start to finished product while still these shoes include natural
hemp, organic cotton, and/or recycled polyester and these materials are used on the upper, liner and/or the
insole cover (instead of the standard suede insole). All of shoe boxes are made from 80% recycled post-
consumer waste and are printed with soy ink. With strategies like this its no surprise that Toms is running
a very efficient supply chain. If I were to improve their supply chain, I would tackle the distribution issue.
Because Toms outsources production, most costs come in the form of transporting goods to and from
warehouses across the US and the Globe. Toms’ warehouses are spread with large distances in-between,
leading to long delivery times and high inventory costs. I would mandate a 48-72 hour warehouse period
to cut these costs and unnecessary storage life. I would possibly add a few warehouses across the nation
and globe to make distribution a smoother, quicker and cost effective process.
References: http://www.toms.com/corporate-responsibility/l
Text book page 35-40
http://www.siliconprairienews.com/2010/02/toms-shoes-founder-blake-mycoskie-discusses-
social-entrepreneurship
http://www.toms.com/our-movement/l
http://boss.blogs.nytimes.com/2013/03/19/questioning-the-toms-shoes-model-for-social-
enterprise/?_php=true&_type=blogs&_r=0

10. 10
***Below is an image of how Toms interacts with Partners to distribute shoes to those in need based on
the description above:
*** (Look back at Chart above in question 5 to understand connections)
7. Provide and explain one environmental and one social issue of major concern for the company (one
paragraph each) – justify your answers.
Environmental: Toms like almost every product, requires a series of raw materials to create their final
product. From the packaging to the final product, many materials are used and are quickly diminishing in
the environment we all inhabit. Campaigns, issues and expectations around working conditions in supply
chains have pushed retailers, especially Toms to demonstrate responsible behaviors. Environmental
impact of production and waste management were the top criteria for company improvement (including
issues such as: climate change, packaging, waste management and recycling, energy/efficiency,

11. 11
renewables, carbon emissions, light bulbs, plastic bags, bottles, supply chain management, paper and
green buildings. Toms tackles many of these issues. One way they tackle the diminishing resource is
through use of re-usable and renewable raw materials. Toms offers shoes with sustainable and vegan
materials and are working to expand these offerings. These shoes include natural hemp, organic cotton,
and/or recycled polyester and these materials are used on the upper, liner and/or the insole cover. All shoe
boxes are made from 80% recycled post-consumer waste and are printed with soy ink. Using
Social: Since 2008, almost all companies have faced pressure regarding social issues surrounding
outsourcing and global supply chains. By having factories in places like India, China, Ethiopia and
Argentina, Toms is exposed to social and labor issues such as human-trafficking, child labor and
corporate “enslavement”. Toms has turned some of these issues into opportunities. Toms is aware of the
challenges associated with overseeing a global supply chain and their global staff actively manages and
oversees suppliers and vendors to ensure that their corporate responsibility standards are upheld. On an
annual basis, Toms requires direct suppliers to certify that the materials incorporated into products are
procured in accordance with all applicable laws in the countries they do business in, including laws
regarding slavery and human trafficking. Toms also clearly defines appropriate business practices for
employees and holds them accountable for complying with company policies, including the prevention of
slavery and human trafficking within their supply chain. To find out more on how tome actively fights
against many of these social issues, visit:
http://www.tomsstage.toms.com/media/files/TOMS_TraffickingSlaveryEfforts.pdf
References: http://www.tomsstage.toms.com/media/files/TOMS_TraffickingSlaveryEfforts.pdf
http://www.startsomethingthatmatters.com
http://www.toms.com/corporate-responsibility/l
Lecture #5 (Patagonia example)
http://www.environmentalleader.com/2009/01/02/retailers-find-environmental-concerns-playing-
larger-role-in-reputation-2/
http://www.fastcoexist.com/3027184/the-toms-shoes-model-taken-to-the-extreme-one-for-one-
homes#2
8. What would you recommend to make your operations more sustainable? (two paragraphs)
One of the main issues I still see with the operations of Toms is its distribution method. Because
all of Tom’s factories are in foreign countries, a series of company warehouses are spread across the globe
to make distribution an easy process. A few recommendations could be made to this sector in order to
make Toms more sustainable. On average it takes Toms 6 months to go from design to retail. Because
Toms outsources production, most costs come in the form of transporting goods to and from warehouses
across the US and the Globe. Toms’ warehouses are spread with large distances in-between, leading to
long delivery times and high inventory costs. As stated in question number 6, “I would mandate a 48-72
hour warehouse period to cut these costs and unnecessary storage life. I would possibly add a few
warehouses across the nation and globe to make distribution a smoother, quicker and cost effective
process.”
However another way to improve distribution is to cut long-term costs and make damage to the
environment less severe. Tom’s is a company that spends a bulk of its money on truck distribution to
retailers globally from warehouses. Although the move seems risky and hasn’t been done by many
companies, Toms could possibly sell all current trucks or upgrade them to fuel-efficient hybrids or energy

12. 12
conservers. Toms would be able to praise their distribution methods while also connecting this change
back to branding of the company, one who continues to push for change in the industry. With this major
change in distribution, the company will save money by using clean energy and improve sustainability for
the long haul.
References:http://www.fastcoexist.com/3027184/the-toms-shoes-model-taken-to-the-extreme-one-for-
one-homes#2
http://www.toms.com/media/TOMS_Giving_Report_2013.pdf
http://bbmg.com/how/embed/
Disrupt and Delight Article
9. What is your opinion on how well (i) corporate strategy related to your product, (ii) business
operations, (iii) company’s brand and (iv) CSR and sustainability actions are aligned and working toward
maximizing value for the company.
Chief founder and shoe giver of Toms noticed children without shoes in Argentina. His idea was to start a
charity but he knew to be sustainable, it could not survive on mere donations. With this idea in mind, he
decided to create one of the first combinations of a for-profit and non-profit organization. The corporate
strategy focuses on four key components: Environmental Scanning, Core Competencies, Core Processes,
and Global Strategies. Toms combines all these strategies to create a tone around their overall brand.
Toms ties their philanthropic image straight down to the products. But he does so at a cost. Because his
entire corporate strategy is based around his philanthropic image, he must maintain his initial mission
statement and continue the “one for one” (for every pair bought by a customer, one pair is donated). This
means that half the inventory of the company is given away at 0 profit. However because of this, effective
operations and corporate strategy are keys to success. The entire operations system for Toms is based on
limiting costs and using resources (especially of Toms 75+ global partners) around to create a profitable
business. By strategically placing factories in countries such as Ethiopia, Argentina and China, Toms has
created a network in which it is easy and fast to get donated shoes from point A (factory) to point B (on a
child’s foot). The company’s branding is crucial to its success and by being placed in commercials
(especially the AT&T commercial), Toms was able to get its voice to the public, a public looking to
benefit others while still obtaining a personal gain. The branding of Toms is surprisingly one of the main
reasons it has become successful. Toms has become an expert in using re-usable and more importantly
local resources near factories to limit costs and maximize value. Overall the Company does a seemingly
impressive job intertwining non-profit and for profit organization in aspects i), ii), iii) and iv).
References: http://www.youtube.com/watch?v=Ay7xrXBa7Zo
10. What are your two main take aways from this assignment and the Module so far? Provide your
personal and unique view (two paragraphs)
Much like the previous module assignment I found this assignment very interesting. One of the
main take aways from this assignment was utilizing knowledge in practice. It is one thing to sit in Omar’s
lecture, and hear certain terms and definitions. But it was another thing entirely to actually pursue
understanding of these terms and how they actually relate to the “real world”. This module assessment
gave me the opportunity to apply some learned knowledge to a company I had keen interest in. I was able
to learn a lot about the “in’s and out’s” of the company and picked up some information I never thought I

13. 13
would. Actually seeing specific terms come to life in a full throttle global operations system was both
interesting and exciting. In this sense one of the main things I took from the assessment was transforming
abstract knowledge into more concrete and relatable material that is easier to digest.
As a consumer it is easy to overlook the behind the scenes operations of a company. The module
has definitely widened my interest horizon and I have a whole new level of understanding of the
operations process. I think one of the main things I took from this module was learning the importance
and value of operations management / sustainability. For a company like ZARA, operations management
alone is almost the sole cause for success, and not on a minor scale. Operations can make or break a
company, and now when I enter future restaurants, retail stores, etc., I know I will be curious as to how
the product ended up in front of me at the counter or on the shelf. The operations and sustainability
module I feel is one of the most practical modules and fields overall. I also now have a very solid answer
as to why people actually need “businessmen/women” or why business is an actual field worth studying. I
can concretely say that without people working on operations management and things like corporate
responsibility, branding, etc. companies might not survive the “dog-eat-dog” world.