What is the term for reducing the business process layers in a distribution channel?

The term that accurately describes the reduction of business process layers in a distribution channel is disintermediation. This concept involves eliminating intermediaries or middle layers within a distribution process, allowing for a more direct interaction between producers and consumers. The primary goal of disintermediation is to streamline operations, reduce costs, and enhance efficiency in delivering products or services.

By cutting out unnecessary intermediaries, businesses can respond more swiftly to market demands and ensure that customers have quicker access to offerings. This can also lead to lower prices for consumers since the additional costs that intermediaries typically add can be eliminated. Disintermediation is particularly relevant in the context of e-commerce, where companies can sell directly to consumers through online platforms without needing traditional retail outlets.

Other options, while relevant to certain aspects of business operations, do not specifically address the concept of reducing layers in distribution channels. BPR (Business Process Reengineering), for instance, refers to the rethinking and redesign of business processes to achieve significant improvements. Market segmentation emphasizes dividing a broader market into smaller segments to tailor marketing efforts, and network effects highlight the increased value of a product or service as more people use it but do not specifically pertain to the reduction of distribution layers.