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Disintermediation provides major benefits to the distributor.TrueFalse

Disintermediation provides major benefits to the distributor.

True

False

Final answer:Disintermediation often removes or reduces intermediaries in the supply chain, providing benefits mainly to producers and consumers, not to distributors. Consumers may enjoy lower prices and a greater variety of goods, while distributors may see a decrease in their importance.Explanation:The statement that disintermediation provides major benefits to the distributor is false. Disintermediation is the process where intermediaries in the supply chain are removed, or reduced, often enabled by the use of the internet and other technologies. It is consumers and producers who typically benefit the most from disintermediation. Consumers benefit from the increased productivity, and will have a larger variety of goods available at lower prices.The reduced role or elimination of intermediaries can mean that distributors may experience a decrease in their importance and the benefits they capture. The primary advantage commonly rests with the producers and the end consumers, who may enjoy more direct relationships, better prices, and increased efficiency....

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