CLOSED-LOOP AND OPEN-LOOP CASCADING CIRCULAR SUPPLY CHAINS: COMPETITIVE ADVANTAGE AND VALUE CREATION IN THE FASHION TEXTILE INDUSTRY THROUGH DEMAND SEGMENTATION

Abstract

This study looks at closed-loop and open-loop supply chains. It focuses on how companies group customers by demand. It shows how they add value by using materials in a smart way. Results show a link between grouping customer demand and supply chain success. Firms with closed-loop systems use resources better. They connect with partners more than open-loop firms. The study shows the real gains of using circular supply chains. It asks fashion firms to change how they work. Green habits should be a main part of what they sell, not just a rule. The work is original. It combines demand grouping with circular ideas. This view opens doors for research on how buyers act and how supply chains stay green. This work adds to what we know. It gives hard proof that a good supply chain makes a firm stand out. This matters in a crowded fashion market. This study tries to show fashion firms a path forward. Firms can help nature and make money by using circular systems well. The implications of this study extend beyond theoretical frameworks to offer actionable insights for practitioners striving to navigate the dual pressures of environmental sustainability and competitive market dynamics. By illustrating the tangible benefits of embracing cascading circular supply chains, the study encourages a paradigm shift in operational strategies within fashion firms, urging them to embrace sustainability not merely as a regulatory necessity but as a core component of their value proposition.