Transparent supply chains in e-commerce: Distributed order management with neuland

A transparent and flexible fulfillment and logistics process linked to the online store? It works. Together with our long-standing customer Douglas, we have developed an order management system ourselves that mediates between logistics service providers (LSP) worldwide and Douglas' store software. We present the project.

Problem definition:

• Complexity of omnichannel management systems for the ordering process

• Decentralized warehouse management with different warehouse management systems

• Integration of stock from stores and online marketplace platforms

• Merging orders from different shopping baskets

• Need for smooth order fulfillment and delivery after payment and order entry

Solution approach:

• Development of a modern order management system (OMS)

• Separate logistics processes from the online store

• OMS controls all logistics companies

• Transparency and flexibility in the supply chain

• Break down order processing into steps and events

• Introduction of various fulfillment options from online warehouse, stores and marketplace partners

• Predict delivery and service times and track disruptions

Result:

• More transparency in the supply chain

• More efficient logistics through standardization and data analysis

• Standardized data basis for reporting: better customer communication

• More satisfied end customers thanks to transparent, flexible fulfillment processes

• Complete decoupling of store and warehouse

Together with Douglas, neuland has implemented a modern order management system - a Distributed Order Management System, or OMS for short. This system helps to process orders easily and smoothly between various logistics service providers and the Douglas store software. This ensures that all orders reach customers on time and in full. The OMS also forms a standardized logistics interface between the store and logistics providers. This makes it easier for Douglas to connect new warehouses.

Transparent supply chains and smooth processing

Our customers must always have an overview of their supply chains, and the end customer expects to receive all important information about the order immediately. This transparency covers the entire supply chain - from purchase to acceptance of the goods. The return route of the parcel is also tracked for returns. "We make sure that the orders actually reach the customers," says Achim Grimm (software developer and architect), summarizing the project.

Improved omnichannel capabilities

With our enhanced omnichannel capabilities, orders can also be processed in stores if they were placed online. Omnichannel here means that sales and fulfillment are seamless between online and offline channels. The new OMS improves transparency in the supply chain and processes are better controlled. This significantly reduces complexity in the online store and reporting.

More flexibility in order processing

The OMS divides order processing into individual steps. These steps, such as warehousing, transportation, picking and parcel services, can be used separately. The interfaces are standardized, which makes the provision of services traceable. Optimization potential can be identified through intelligent data analysis.

The OMS also enables the integration of several online stores into the warehouse, including country or brand stores. Marketplace partners are connected via the Mirakl platform. The most important options for online stores are

• Warehouse Fulfillment: shipping from the online warehouse with additional services such as greeting cards or product personalization possible.

• Marketplace deliveries: Marketplace providers make offers available. The price sovereignty remains with the seller and not with the supplier. The guarantee is provided by Douglas.

• Sale on account of third parties: Shop operators only mediate, the marketplace partner issues the invoice.

• Ship From Store (SFS): Shipping directly from the stores.

• Click & Collect Express: Fast collection of goods from stores.

• Instant Delivery: Fast delivery by courier services directly from stores.

We can offer these options to our customers through the OMS, but they are used differently depending on the customer and country. Many of these models can be combined, but some are mutually exclusive. For example, a marketplace partner cannot send a bicycle courier from its central warehouse.

Transparent delivery processes for better customer communication

Our Order Management System (OMS) enables us to plan delivery times and service times even more precisely. The increased transparency ensures that we always know when an order will arrive. If there are any problems, every step can be tracked - from the measures taken to communication with the customer. Thanks to a process for data delivery - across different warehouses, carriers and countries - everything remains in view and we can react faster and more efficiently.

Modern architecture for logistics processes

Our system is based on advanced development methods. We use the principle of Domain Driven Development (DDD) and rely on a so-called hexagonal architecture. In addition, our code is test-driven and maintainable, so the software has a long life cycle and is future-proof. This means that all important aspects of orders and returns can be mapped and summarized as independent units. Every change creates a permanent event that is made visible.

This method makes it possible to display all processes transparently and to inform other systems of all relevant changes. For example, a message about a dispatched parcel is sent both to the online store and to the parcel tracking and reporting systems. We use monitoring and alerts directly from the application to monitor the most important business figures (KPIs) and ensure that the processing of an order in the warehouse does not take longer than expected.

ADVANTAGES AT A GLANCE

For our customers who use a specially developed Distributed Order Management System, this means the following advantages:

• complete decoupling of store and warehouse

• less complexity

• More transparency throughout the entire supply chain

• Flexibility in the individual processes

• Optimization through intelligent data analysis

• Better customer communication

• Easier handling and greater transparency thanks to clearly defined system boundaries

• More efficient logistics and cost benefits thanks to standardized interfaces

Conclusion: a secure, flexible and future-proof platform

With our OMS, we have developed a transparent, flexible and secure platform together with Douglas that seamlessly connects the logistics processes to the online store. The system manages all stocks and is at the heart of all logistics processes. It is a "system behind the system" that keeps an eye on everything.

We want to further improve the system in the future. For example, we plan to send missing items from other warehouses, from marketplace participants or from stores. Stores are now also connected to the online store via the OMS and can therefore help the warehouses. In the long term, our OMS can support and optimize almost all post-order processes.

At neuland, we attach great importance to developing our systems in such a way that they are flexible and modular . This means that the technical systems can work independently of each other to solve specific customer challenges. In this way, we ensure that our solutions are always optimally tailored to the needs of our customers.