Disintermediation in a supply chain refers to which of the following?

• A. Buy supplies further up the supply chain
• B. Increase intermediaries
• C. Reduce internet usage in procurement
• D. Shorten lead times by local suppliers

Answer: (A)

Disintermediation means removing intermediaries from the supply chain and buying directly from the source. It moves procurement closer to the origin of the goods, cutting out wholesalers or distributors. So choosing the option that describes buying supplies further up the chain fits this idea because it reflects bypassing middlemen and sourcing straight from upstream suppliers. The other ideas either add intermediaries, rely on reducing internet use (which is not about cutting out middlemen), or focus on geography or speed rather than eliminating the middlemen in the channel.