SCM activities are expensive due to suppliers' associated costs related to purchasing quality raw

materials such as denim fabric, threads, and zippers for slim-fit denim jeans. For instance,
Everlane spends nearly $12.78 on sourcing materials (Thompson et al., 2022). The company's
activities for transforming raw materials into finished products are also relatively expensive. On
labor, the firm incurs a unit cost of $7.50 (Thompson et al., 2022). The high costs significantly
affect the company's profits.

Necessary Support Activities

Product research and development (R&D) is essential in enhancing Everlane's quality of goods
and services. Under the company's 'radical transparency' policy, it should produce casual
clothing designed to last long (Thompson et al., 2022). Developing new styles, fits, and features
for jeans requires significant investment in research and design, which includes hiring skilled
designers and conducting market research to understand consumer preferences and tailor durable
products that can meet their needs. Everlane should invest in product design and R&D processes
to enhance product quality and appeal to customers.

Important Value Chain Activities for Securing Competitive Advantage

Product R&D, Technology, and Systems Development

Investing in research and development allows Everlane to create unique, high-quality denim
designs that differentiate its products from competitors. Innovative features and cutting-edge
styles can attract a loyal customer base. Streamlined production systems will improve product
quality, turnaround times, and the business's responsiveness to market trends.

SCM

Building and maintaining strong relationships with high-quality suppliers is also essential in
increasing the company's competitiveness. For upscale shirts, the choice of fabric and the
associated accessories will significantly impact the final product's quality and cost (Thompson et
al., 2022). Negotiating favorable terms and prices for bulk purchasing of raw materials can
reduce overall production costs.