Disintermediation is the process of removing the middleman in a supply chain. By removing the middleman from the picture it reduces unnecessary costs been made all the time. Distribution channels always consist of wholesalers, agents, retailers and manufacturers, however by cutting th middleman out you can interact directly to your customers as nothing gets in the way. This saves a lot of time, money and is more reliable and trustworthy.
There are many businesses out there who prefer to get rid of the middleman as it makes things more accurate and reliable. ASOS have also removed their middleman because when an order is made, goods are delivered straight from their warehouse and are sent to their customers. No third person is needed to make this process possible.
Disintermediation can be very helpful in many different ways, and as ASOS use this process they are also in advantage as it helps them a lot. For example, it saves a lot of time because to get the goods to the right place the only thing ASOS have to do is send the package of and it directly reaches the right person. If a third person was needed to make this possible, unnecessary costs would be made as it is still possible to do without someone else's help. Disintermediation will also save a businesses profits, because if they did not remove the middleman, they would have to pat them to get the work done, and as ASOS use disintermediation, it will definitely save their money which they can then use on much better things that will improve their business. Lastly, since ASOS do not use a middleman to get their goods to the right customer, it definitely impresses their customers because they promise next day delivery yet they do not use a third person to make that happen. This then shows customers what a developed and well maintained business ASOS is.