P1) What is ‘disintermediation’ and does it help producers?

Disintermediation is the elimination of intermediaries in the supply chain, also referred to as cutting out the middle man. ASOS use disintermediation as they deliver goods from their warehouse to the customers therefore they deal with the customers directly rather than including a middle man such as agents or retailers. Also as ASOS are clicks they operate directly online rather than having shops in retail as they have warehouse where their stock is held and sent out to customers. ASOS warehouse is compared to be the size of five football pitches. Disintermediation provides ASOS with easy access to their customers as they are able to send their customers products directly from their warehouse.  ASOS are also able to provide lower prices as they do not have to sell their products via a retailer.  This can therefore increase the overall profit as customers may also find it convenient dealing directly with ASOS.