Enabling Consumer Engagement in Closing the Loop: The Role of Supply Chain Transparency

Companies are increasingly motivated to adopt closed-loop principles, particularly in response to growing regulatory pressures. However, the successful transition to closed-loop supply chains requires active consumer involvement in supply chain processes. Consumers play a pivotal role in determining the fate of their end-of-use products, and their participation in take-back programs is crucial to initiating reverse logistics processes. Supply chain transparency can be a powerful tool for enabling consumers to engage in closed-loop processes, especially by encouraging participation in take-back initiatives organized by retailers. This study uses a scenario-based experiment with U.S. consumer participants in the context of the textile and clothing industry to test the impact of two key components of closed-loop supply chain transparency—namely, visibility and traceability—on consumer outcomes. The findings contribute to both closed-loop supply chain and consumer-centric supply chain management literature, offering managers practical insights into how strategic investments in supply chain transparency can enhance consumer participation in closed-loop supply chains.