Cutting out the middleman - Definition

Cutting out the middleman is a business model that involves reducing costs by removing layers from a distribution network. Cutting out the middleman may become possible as a result of better technology or economies of scale. This is sometimes referred to as 'disintermediation'. It reduces transaction costs, processing time and brings the producer or manufacturer of the product / service that much 'closer' to the customer, arguably making them more responsive to the customers' needs both by delivering the products / services faster and more accurately to meet the customers' tastes and preferences.