Posted in Operations and Supply Chain Terms, Total Reads: 1561

Definition: Disintermediation

Traditionally a supply chain consists of the following levels of intermediaries 

Supply Chain Traditional

Disintermediation works on the principle of "cutting out the middleman". Now a day’s companies are preferring to reach out to every customer directly. One of the key enablers in this direction is the Internet. Now a supply chain looks like


The gains from disintermediation are that companies can sell their products

  • Cheaper
  • Faster
  • Provide better quality service

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