Disintermediation is the economic term for the removal of intermediaries in a supply chain. Often referred to as "cutting out the middleman", it is a painful process for distributors.

Distributor Reaction

Their first response to this is generally one of indignation. “We've been cheated out of our rightful place!” But the realities of the post-internet world are revealing that some businesses disappearing rapidly. The emergence of the Internet with its easy information dissemination, effective email communications, and e-commerce with its easy product selection and purchase exacerbates this already tenuous situation. The position of the intermediary is untenable and disintermediation occurs.