Decision Support Systems

EXECUTIVE SUMMARY

The comprehensive optimization of the supply chain has become a strategic element, due to different factors: globalization of trade, diversification of supply sources, specialization of production centers, transfer flows between factories and deliveries at shorter time. The managing of all this company’s factors is part of a process where its goals and activities are the mainobjectives. These objectives are achieved based on decision making from the top management .
Organizational outcomes are linked directly to the effectiveness of those decisions and in addition, they can extract information that has been stored over their operations, using intelligent and decision support systems, reducing the risks of those decisions.

The purpose of this report is to providea view and a recommendation on if our currently logistic managers should implement new technologies that allow appropriate decisions to help them in managing the supply chain and to control its operation aimed to fulfill its objectives, optimizing resources and reducing costs.

I conclude based on my findings that manager’s judgment is essential to succeed when they combine technology anddecision support systems.
The importance for managers is the creation of a supportive tool, under their own control, that does not attempt to automate the decision process, predefine objectives, or impose solutions (Keen and Scott Morton 1978).










INTRODUCTION

Logistics and distribution areas for the companies today are embracing increasingly global operations, which arerequired to improve and optimize the scope of its operations, relationships with suppliers and customers. To satisfy the needs of the market is necessary to manage all the processes that integrate the tasks performed by the company, in order to ensure good performance. That is why we need to look for solutions to improve efficiency and control.
For small and medium firms, to achieve a good position inthe market is more complex because the budgets that they manage do not compete with large organizations that dispute for the position of leaders in the area in which they operate. These companies are trying to do better by investing in developed tools, for example, technology, decision support systems and third party providers. These tools enable them to improve its internal processes and make themmore productive, competitive and more capable of improvement.
Every search for solutions is basically related to the improvement of logistics management of the company and to achieve progress of it. In addition, a good project management leads to better business logistics, which is why the aim of this assignment is to analyze and assess how the technology, the decision support systems and thethird party providers are essential for the success of the company’s logistic area. This assignment intends to explain some ways of optimization of those three factors mentioned before to improve profitability.












2. TECHNOLOGY AND DECISION SUPPORT SYSTEMS.

When we think about information technology systems that brings to our mind computers, telecommunications, Internetand money. Within this image that comes to mind we could actually separate it in many areas of information technology. Those information systems indicate a development and metamorphosis of work that was previously unknown. There are systems that help us to operate and to do repetitive actions; however there are systems that help to store data, sort it, make it to have sense and convert it ininformation. It is in here where decision support systems (DSS) play an important role.

2.1 Business Intelligence.

As we know, day to day companies are making different kind of business decisions, and in different ways. There are decisions that are made rationally, and others that are less systematic, almost for instinct. The raw material used by DSS systems for decision-making is the data....