Frontiers in Business Innovations and Management

Open Access Peer Review International
Open Access

Strategic Advantages and Economic Efficiency of Transitioning from Intermediary Procurement to Direct Contracts with Manufacturers in The Supply System of Industrial Enterprises

4 Expert in International Logistics and Predictive Supply Chain Management Saint Petersburg, FL, USA

Abstract

Against the backdrop of increasing turbulence in global markets and chronic disruptions in supply chains, industrial companies are compelled to rethink established, multi-stage procurement schemes. The aim of the study is to systematize and critically evaluate the strategic advantages and economic effectiveness of direct communications with manufacturers within the supply system of industrial enterprises, as well as to identify key technological and organizational determinants that ensure the success of such a transition. Methodologically, the research relies on a mixed approach: a systematic review of academic publications and industry analytics is complemented by an in-depth case analysis of the company George Biosystems. The results show that disintermediation, accelerated by digital transformation (primarily through the implementation of IoT and big data analytics), delivers reductions in total costs (by 10–40%), increases in operating margins (by 7–14%), strengthening of supply chain resilience, and enhancement of their transparency. The key transmission mechanism is the reduction of transaction costs and information asymmetry. It is concluded that the transition to direct contracts is strategically justified and economically feasible for building competitive advantages; however, the magnitude of the effect is determined by the company’s level of technological readiness and the presence of comprehensive risk management mechanisms. The material will be of interest to heads of supply and logistics, procurement directors, as well as researchers focused on issues of operational efficiency and strategic sourcing.

How to Cite

Perminov, M. A. (2025). Strategic Advantages and Economic Efficiency of Transitioning from Intermediary Procurement to Direct Contracts with Manufacturers in The Supply System of Industrial Enterprises. Frontiers in Business Innovations and Management, 2(11), 01–09. Retrieved from https://irjernet.com/index.php/fbim/article/view/341

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