Cutting out the middleman, also known as disintermediation, is a business model that bypasses intermediaries in a supply chain. The classic example, is a farmers market that directly connects producers and consumers thus cutting out an array of businesses who are typically involved in buying, transporting, warehousing, distributing and selling food.
|Definition||A business model that bypasses intermediaries in a supply chain.|
|Value||Lower pricesAllows producers to directly represent their product, potentially creating incentives for higher quality.|
|Related Concepts||Added Value|
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