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The risks, threats and opportunities of disintermediation A distributor's view

The risks, threats and opportunities of disintermediation A distributor's view During the 1990s the “information age” spawned a new breed of enterprises devising business models unheard of previously. One aspect of this changing business environment has been the trend in disintermediation observed in many industries. Where many recent papers see disintermediation as a phenomenon related to online transactions, this paper defines it more broadly as the removal or a weakening of an intermediary within a supply chain. This paper attempts to explain why disintermediation of distributors/import agents often occurs at the growth phase of a product's lifecycle, highlighting possible opportunities and outcomes for distributors threatened by disintermediation. The paper uses a downturn in a company's fortune to illustrate the case and to provide a potentially generic analytical tool for small distributors that will almost inevitably face a conflict of interests with their suppliers, which leads to disintermediation pressure. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Physical Distribution & Logistics Management Emerald Publishing

The risks, threats and opportunities of disintermediation A distributor's view

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Publisher
Emerald Publishing
Copyright
Copyright © 2004 Emerald Group Publishing Limited. All rights reserved.
ISSN
0960-0035
DOI
10.1108/09600030410567487
Publisher site
See Article on Publisher Site

Abstract

During the 1990s the “information age” spawned a new breed of enterprises devising business models unheard of previously. One aspect of this changing business environment has been the trend in disintermediation observed in many industries. Where many recent papers see disintermediation as a phenomenon related to online transactions, this paper defines it more broadly as the removal or a weakening of an intermediary within a supply chain. This paper attempts to explain why disintermediation of distributors/import agents often occurs at the growth phase of a product's lifecycle, highlighting possible opportunities and outcomes for distributors threatened by disintermediation. The paper uses a downturn in a company's fortune to illustrate the case and to provide a potentially generic analytical tool for small distributors that will almost inevitably face a conflict of interests with their suppliers, which leads to disintermediation pressure.

Journal

International Journal of Physical Distribution & Logistics ManagementEmerald Publishing

Published: Oct 1, 2004

Keywords: Distributors; Business development; Supply chain management

References

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