Disintermediating a distribution channel (or supply chain): increases costs and risk stabilises final cost to consumers removes the steps between producer and consumer None of the above
Question
Disintermediating a distribution channel (or supply chain):
increases costs and risk
stabilises final cost to consumers
removes the steps between producer and consumer
None of the above
Solution
The correct answer is "removes the steps between producer and consumer".
Disintermediation in a distribution channel or supply chain refers to the elimination of intermediaries between producers and consumers. This can be achieved through various means such as direct selling or online selling. The main aim of disintermediation is to reduce costs and improve efficiency in the supply chain. However, it's important to note that while disintermediation can reduce costs, it can also increase risk due to the lack of control over the distribution process.
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