Operational Transparency in Closed-Loop Supply Chains: Activating Consumers as Suppliers

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 as suppliers 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. Operational transparency can be a powerful tool for enabling consumers to engage in closed-loop processes, particularly by encouraging their participation as suppliers through take-back initiatives organized by retailers. This study uses three scenario-based experiments with U.S. consumer participants in the context of the textile and clothing industry to test the impact of operational transparency on consumer outcomes. The findings contribute to both the operational transparency and consumer-centric supply chain management literature, offering managers practical insights into how strategic investments in operational transparency can enhance consumer participation in closed-loop supply chains.