Of the large number of RFID deployments of leading automatic identification and data capture companies today, most are closed-loop. The closed-loop method allows the client to gain the benefit through streamlining its own supply chain, asset management, and manufacturing processes. Closed-loop RFID directly and exclusively serves the interests of the individual corporation and leaves the deployment and management information systems integration issues within the corporation's control. While any RFID deployment takes time and money, a case can be made for the 'simplicity' of closed-loop deployments due to their reduced scale and increased control. The administrative and logistical difficulties of information sharing (incompatibility of data, processing power, and man hours) are minimized in closed-loop systems.
Source: Integrated Solutions