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top   »  business   »  business models   »  business opportunity   »  middleman   »  cutting out the middleman

What is Cutting Out The Middleman?

 , updated on December 08, 2016
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.
Overview: Cutting Out The Middleman
FunctionBusiness Model
DefinitionA business model that bypasses intermediaries in a supply chain.
ValueLower prices
Allows producers to directly represent their product, potentially creating incentives for higher quality.
Related ConceptsAdded Value

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