In staggering numbers, and in large part because of technology like the Internet, manufacturers and vendors are bypassing multi-tiered distribution channels to sell directly to end users. If your company's primary function is to be a link in the supply chain, what will you do when the chain breaks or rusts away?
Like the pearl inside the lowly oyster, hidden within every threat are opportunities waiting to be harvested by those willing and able to crack open the existing paradigm.
Remember when big banks started consolidating? Many small banks panicked, wondering how they could possibly compete against the banking behemoths. Those that looked beneath the surface of the crisis noticed service gaps left by the new regional banks. They moved quickly to establish community banks to fill niches in the local markets. Such banks turned what many saw as a threat into an opportunity... and they continue to prosper today.
The pearl.
If disintermediation is the threat, then "reintermediation" is the opportunity. Reintermediation is the emergence of new kinds of intermediaries in the supply chain. These new "middlemen" are applying high-tech "grease" to the wheels of commerce as they seek out innovative ways to mediate vendor-user relationships.
While no one knows precisely what all the new middlemen will do or who they will be, one breed has already emerged- infomediaries such as Lumeria and PopularDemand. These companies, unlike the links in the old distribution chains, serve primarily as agents of consumers rather than vendors. They gather consumer data and use consumer profiles to help buyers navigate the marketplace.
The most valuable infomediaries understand consumers better than consumers understand themselves. They provide considerable value by:
- Shortening the search for the perfect product,
- Connecting purchasers to the most suitable vendors,
- Providing information about products and services (including third-party evaluations), and
- Negotiating the best deal by aggregating consumers' purchasing power.
Instead of warehousing and shipping goods, the infomediaries warehouse information, which they use to benefit consumers. It's too early to tell how prosperous these new middlemen will become. You and I will make the judgment. But what would YOU pay each month, for example, to have all your shopping done better than you could do it and at a lower cost? That's the level of customer-centric service they aspire to provide.
Take the plunge.
Directly or indirectly, disintermediation threatens your company. Where is the hidden opportunity, and in what ways can you turn it to your advantage? Ask yourself:
- How can I better mediate the relationship between my suppliers and my customers?
- Are there new paradigms I should pursue to seize this opportunity?
- If I were entering the market today, how would I design my business?
Shortsighted middlemen might temporarily gain by scavenging among sellers that resist new forms of commerce ... kind of like gathering shells along the shoreline. While this strategy might be safer than taking the plunge into unknown waters, it's not likely to produce the lucrative pearls that drew you to the sea in the first place.
|
Recommended reading: "Net Worth: Shaping Markets When Customers Make the Rules," by John Hagel III and Marc Singer, 1999, Harvard Business School Publications. |
 |
