Order Management Service - Full Business Capabilities & Domain Architecture

Executive Summary

The Order Management Service (OMS) is a Core Bounded Context within the PakLog fulfillment platform that orchestrates the complete order lifecycle from creation through fulfillment. Built with Saga pattern and state machine architecture, it coordinates complex distributed transactions across inventory, warehouse, shipping, and financial systems while maintaining order integrity and customer experience.

Strategic Importance: CRITICAL - Central hub for all fulfillment operations Architecture Pattern: Saga Orchestration with State Machines Technology Stack: Java 21, Spring Boot 3.2, PostgreSQL, Apache Kafka, Spring State Machine Domain Complexity: VERY HIGH - Complex orchestration with compensating transactions

1. BOUNDED CONTEXT DEFINITION

1.1 Context Name: Order Orchestration & Fulfillment Management

Core Purpose: Centralized orchestration of order lifecycle management, coordinating all fulfillment activities across distributed services while maintaining transactional integrity and optimal customer experience.

1.2 Context Boundaries

Responsibilities (What’s IN the Context):

• ✅ Order creation, validation, and enrichment
• ✅ Order state machine and lifecycle management
• ✅ Payment authorization and capture orchestration
• ✅ Inventory reservation and allocation coordination
• ✅ Fulfillment orchestration and routing
• ✅ Order splitting and consolidation logic
• ✅ Cancellation and modification workflows
• ✅ Return and refund orchestration
• ✅ Order status tracking and notifications
• ✅ SLA management and escalation
• ✅ Fraud detection and order validation
• ✅ Priority and expedite handling

External Dependencies (What’s OUT of the Context):

• ❌ Inventory ownership (belongs to Inventory Service)
• ❌ Physical warehouse operations (belongs to Warehouse Operations)
• ❌ Shipping label generation (belongs to Shipment & Transportation)
• ❌ Payment processing (belongs to Payment Service)
• ❌ Customer data management (belongs to Customer Service)
• ❌ Product catalog (belongs to Product Catalog Service)
• ❌ Pricing calculations (belongs to Pricing Service)

1.3 Ubiquitous Language

2. SUBDOMAIN CLASSIFICATION

2.1 Subdomain Map

graph TB
    subgraph "Order Management Bounded Context"
        Core1[Core: Order Orchestration]
        Core2[Core: Fulfillment Coordination]
        Core3[Core: State Management]
        Support1[Supporting: Order Validation]
        Support2[Supporting: SLA Management]
        Support3[Supporting: Notification Management]
        Generic1[Generic: Event Publishing]
        Generic2[Generic: External Integration]
    end

    Core1 --> Core2
    Core1 --> Core3
    Core2 --> Support1
    Core3 --> Support2

2.2 Core Subdomain: Order Orchestration

Classification: CORE DOMAIN Strategic Value: CRITICAL - Heart of fulfillment operations Investment Priority: HIGHEST - Continuous improvement required

Why It’s Core:

• Business Critical: Every sale flows through order management
• Complex Coordination: Orchestrates 10+ services per order
• Competitive Differentiator: Fast, accurate fulfillment drives customer satisfaction
• Unique Business Logic: Custom rules for routing, splitting, prioritization

Key Capabilities:

• Distributed transaction coordination using Saga pattern
• Compensating transaction management
• Idempotent operation handling
• Parallel and sequential orchestration
• Timeout and retry management
• Circuit breaker implementation

Domain Services:

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@SagaOrchestrationService
public class OrderOrchestrationService {

    @StartSaga
    public OrderSaga startOrderFulfillment(Order order) {
        return OrderSaga.builder()
            .orderId(order.getId())
            .customerId(order.getCustomerId())
            .items(order.getLineItems())
            .shippingAddress(order.getShippingAddress())
            .paymentMethod(order.getPaymentMethod())
            .build()
            .start();
    }

    @SagaStep(compensate = "releaseInventory")
    public ReservationResult reserveInventory(OrderSaga saga) {
        return inventoryService.reserve(
            saga.getItems(),
            saga.getOrderId(),
            Duration.ofMinutes(30)
        );
    }

    @SagaStep(compensate = "cancelPayment")
    public PaymentResult authorizePayment(OrderSaga saga) {
        return paymentService.authorize(
            saga.getPaymentMethod(),
            saga.getTotalAmount(),
            saga.getOrderId()
        );
    }
}

2.3 Core Subdomain: Fulfillment Coordination

Classification: CORE DOMAIN Strategic Value: CRITICAL - Enables efficient operations Investment Priority: HIGHEST - Direct impact on costs

Why It’s Core:

• Operational Efficiency: Optimal routing saves 20% fulfillment cost
• Complex Decision Making: Multi-criteria optimization
• Real-time Adaptation: Dynamic re-routing based on conditions
• Business Rules Engine: Hundreds of routing rules

Key Capabilities:

• Intelligent order routing (nearest warehouse, split shipment)
• Wave planning and release management
• Load balancing across fulfillment centers
• Express/standard fulfillment paths
• Drop-ship coordination
• Cross-dock routing

2.4 Core Subdomain: Order State Management

Classification: CORE DOMAIN Strategic Value: HIGH - Ensures order integrity Investment Priority: HIGH - Foundation for operations

State Machine Definition:

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@Configuration
@EnableStateMachine
public class OrderStateMachineConfig extends StateMachineConfigurerAdapter<OrderState, OrderEvent> {

    @Override
    public void configure(StateMachineStateConfigurer<OrderState, OrderEvent> states) {
        states
            .withStates()
            .initial(OrderState.CREATED)
            .state(OrderState.VALIDATED)
            .state(OrderState.PAYMENT_AUTHORIZED)
            .state(OrderState.INVENTORY_RESERVED)
            .state(OrderState.RELEASED_TO_WAREHOUSE)
            .state(OrderState.IN_FULFILLMENT)
            .state(OrderState.PACKED)
            .state(OrderState.SHIPPED)
            .end(OrderState.DELIVERED)
            .end(OrderState.CANCELLED);
    }

    @Override
    public void configure(StateMachineTransitionConfigurer<OrderState, OrderEvent> transitions) {
        transitions
            .withExternal().source(OrderState.CREATED).target(OrderState.VALIDATED)
                .event(OrderEvent.VALIDATION_COMPLETED)
            .withExternal().source(OrderState.VALIDATED).target(OrderState.PAYMENT_AUTHORIZED)
                .event(OrderEvent.PAYMENT_AUTHORIZED)
            .withExternal().source(OrderState.PAYMENT_AUTHORIZED).target(OrderState.INVENTORY_RESERVED)
                .event(OrderEvent.INVENTORY_RESERVED)
            .withExternal().source(OrderState.INVENTORY_RESERVED).target(OrderState.RELEASED_TO_WAREHOUSE)
                .event(OrderEvent.RELEASED_FOR_FULFILLMENT);
    }
}

2.5 Supporting Subdomain: Order Validation

Classification: SUPPORTING DOMAIN Strategic Value: MEDIUM - Prevents downstream issues Investment Priority: MEDIUM - Important but not differentiating

Validation Rules:

• Product availability and discontinuation
• Shipping address validation
• Payment method verification
• Fraud scoring and risk assessment
• Business rule compliance
• Regulatory compliance (age verification, export controls)

2.6 Supporting Subdomain: SLA Management

Classification: SUPPORTING DOMAIN Strategic Value: MEDIUM - Customer satisfaction Investment Priority: MEDIUM - Service quality

Capabilities:

• SLA calculation based on service level
• Deadline tracking and alerting
• Escalation workflows
• Performance reporting
• Breach prevention and mitigation

3. DOMAIN MODEL

3.1 Aggregate Design

classDiagram
    class Order {
        <<Aggregate Root>>
        -OrderId id
        -CustomerId customerId
        -List~OrderLine~ lineItems
        -ShippingAddress shippingAddress
        -BillingAddress billingAddress
        -OrderStatus status
        -PaymentInfo payment
        -FulfillmentInfo fulfillment
        -OrderDates dates
        -Money totalAmount
        +create()
        +validate()
        +authorize()
        +allocate()
        +release()
        +cancel()
        +modify()
        +ship()
        +complete()
    }

    class OrderLine {
        <<Entity>>
        -LineId id
        -SKU sku
        -Quantity quantity
        -Money unitPrice
        -Money lineTotal
        -LineStatus status
        -FulfillmentDetails fulfillment
        +reserve()
        +allocate()
        +cancel()
        +ship()
    }

    class FulfillmentPlan {
        <<Entity>>
        -PlanId id
        -OrderId orderId
        -List~Shipment~ shipments
        -RoutingStrategy strategy
        -LocalDateTime plannedDate
        +optimize()
        +execute()
        +modify()
    }

    class OrderSaga {
        <<Saga>>
        -SagaId id
        -OrderId orderId
        -SagaState state
        -List~SagaStep~ steps
        -CompensationStack compensations
        +execute()
        +compensate()
        +retry()
    }

    Order --> OrderLine
    Order --> FulfillmentPlan
    OrderSaga --> Order

3.2 Value Objects

classDiagram
    class OrderId {
        <<Value Object>>
        -String value
        -OrderIdType type
        +generate()
        +validate()
    }

    class ShippingAddress {
        <<Value Object>>
        -String line1
        -String line2
        -String city
        -String state
        -String postalCode
        -String country
        +validate()
        +geocode()
    }

    class OrderStatus {
        <<Value Object>>
        -StatusCode code
        -String description
        -LocalDateTime timestamp
        -String updatedBy
        +canTransitionTo()
    }

    class ServiceLevel {
        <<Value Object>>
        -String code
        -String name
        -Duration sla
        -Money cost
        +calculateDeadline()
    }

    class OrderPriority {
        <<Value Object>>
        -Integer score
        -PriorityType type
        -String reason
        +compareTo()
    }

3.3 Domain Events

4. BUSINESS CAPABILITIES

4.1 Capability Hierarchy

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L1: Order Management
├── L2: Order Processing
│   ├── L3: Order Creation & Validation
│   ├── L3: Order Enrichment
│   ├── L3: Fraud Detection
│   ├── L3: Tax Calculation
│   └── L3: Pricing & Promotions
├── L2: Fulfillment Orchestration
│   ├── L3: Inventory Allocation
│   ├── L3: Warehouse Assignment
│   ├── L3: Order Routing
│   ├── L3: Split Shipment Logic
│   └── L3: Wave Management
├── L2: Order Lifecycle
│   ├── L3: State Management
│   ├── L3: Status Tracking
│   ├── L3: SLA Management
│   ├── L3: Escalation Handling
│   └── L3: Exception Management
├── L2: Modification & Cancellation
│   ├── L3: Order Modification
│   ├── L3: Cancellation Processing
│   ├── L3: Return Initiation
│   ├── L3: Refund Processing
│   └── L3: Compensation Management
└── L2: Integration & Communication
    ├── L3: Service Orchestration
    ├── L3: Event Publishing
    ├── L3: Notification Management
    ├── L3: External System Integration
    └── L3: Reporting & Analytics

4.2 L1: Order Management

Business Goal: Process 100% of orders accurately with optimal fulfillment paths

Key Business Outcomes:

• 99.9% order processing accuracy
• <2 second order creation response
• 15% reduction in fulfillment costs
• 98% on-time delivery rate
• <0.1% order error rate

4.3 L2: Order Processing

L3: Order Creation & Validation

Purpose: Accept and validate new orders from multiple channels

Business Rules:

• Validate product availability
• Verify shipping address deliverability
• Check payment method validity
• Apply business constraints (min/max quantities)
• Enforce regulatory requirements

Implementation:

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@Service
@Transactional
public class OrderCreationService {

    public Order createOrder(CreateOrderRequest request) {
        // Validate request
        ValidationResult validation = orderValidator.validate(request);
        if (!validation.isValid()) {
            throw new OrderValidationException(validation.getErrors());
        }

        // Enrich order data
        Order order = orderEnricher.enrich(
            Order.builder()
                .customerId(request.getCustomerId())
                .lineItems(request.getItems())
                .shippingAddress(request.getShippingAddress())
                .build()
        );

        // Check fraud score
        FraudCheckResult fraudCheck = fraudService.check(order);
        if (fraudCheck.isHighRisk()) {
            order.hold(HoldReason.FRAUD_REVIEW);
        }

        // Calculate pricing
        order.applyPricing(pricingService.calculate(order));

        // Save and publish event
        Order saved = orderRepository.save(order);
        eventPublisher.publish(new OrderCreatedEvent(saved));

        return saved;
    }
}

L3: Fraud Detection

Purpose: Identify and prevent fraudulent orders

Detection Criteria:

• Velocity checks (order frequency)
• Address verification
• Payment method risk scoring
• Historical pattern analysis
• Machine learning models

Risk Levels:

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public enum FraudRiskLevel {
    LOW(0, 30),      // Auto-approve
    MEDIUM(31, 70),  // Additional verification
    HIGH(71, 100);   // Manual review required

    private final int minScore;
    private final int maxScore;
}

4.4 L2: Fulfillment Orchestration

L3: Order Routing

Purpose: Determine optimal fulfillment path for each order

Routing Algorithm:

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@Component
public class OrderRoutingEngine {

    public FulfillmentPlan route(Order order) {
        // Get candidate warehouses
        List<Warehouse> candidates = warehouseService
            .findWarehousesWithInventory(order.getItems());

        // Score each option
        List<RoutingOption> options = candidates.stream()
            .map(warehouse -> scoreOption(order, warehouse))
            .sorted(Comparator.comparing(RoutingOption::getScore))
            .collect(Collectors.toList());

        // Select optimal strategy
        RoutingStrategy strategy = selectStrategy(options);

        return FulfillmentPlan.builder()
            .orderId(order.getId())
            .strategy(strategy)
            .shipments(planShipments(order, strategy))
            .estimatedCost(calculateCost(strategy))
            .build();
    }

    private RoutingScore scoreOption(Order order, Warehouse warehouse) {
        return RoutingScore.builder()
            .distanceScore(calculateDistance(order.getShippingAddress(), warehouse))
            .inventoryScore(calculateInventoryFit(order.getItems(), warehouse))
            .capacityScore(warehouse.getAvailableCapacity())
            .costScore(estimateFulfillmentCost(order, warehouse))
            .slaScore(canMeetSLA(order, warehouse))
            .build()
            .aggregate();
    }
}

Routing Strategies:

• Single Warehouse: All items from one location
• Split Shipment: Multiple warehouses for faster delivery
• Drop Ship: Direct from vendor
• Cross Dock: Transfer through distribution center
• Store Pickup: Customer collection

L3: Wave Management

Purpose: Batch orders for efficient warehouse processing

Wave Planning:

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@Component
public class WavePlanningService {

    @Scheduled(cron = "0 */15 * * * *") // Every 15 minutes
    public void planWaves() {
        // Get pending orders
        List<Order> pendingOrders = orderRepository
            .findByStatusAndWarehouse(
                OrderStatus.RELEASED_TO_WAREHOUSE,
                currentWarehouse
            );

        // Group by criteria
        Map<WaveCriteria, List<Order>> groups = pendingOrders.stream()
            .collect(Collectors.groupingBy(this::determineWaveCriteria));

        // Create waves
        groups.forEach((criteria, orders) -> {
            if (orders.size() >= criteria.getMinimumSize() ||
                criteria.isUrgent()) {

                Wave wave = Wave.builder()
                    .warehouseId(currentWarehouse)
                    .orders(orders)
                    .priority(criteria.getPriority())
                    .targetCompletion(criteria.getDeadline())
                    .build();

                waveRepository.save(wave);
                warehouseService.releaseWave(wave);
            }
        });
    }
}

4.5 L2: Order Lifecycle Management

L3: State Management

Purpose: Maintain consistent order state across distributed system

State Transitions:

stateDiagram-v2
    [*] --> CREATED
    CREATED --> VALIDATED: Validation Success
    CREATED --> CANCELLED: Validation Failure
    VALIDATED --> PAYMENT_PENDING: Start Payment
    PAYMENT_PENDING --> PAYMENT_AUTHORIZED: Payment Success
    PAYMENT_PENDING --> CANCELLED: Payment Failure
    PAYMENT_AUTHORIZED --> INVENTORY_RESERVED: Inventory Available
    PAYMENT_AUTHORIZED --> BACKORDER: Inventory Unavailable
    INVENTORY_RESERVED --> RELEASED: Release to Warehouse
    RELEASED --> IN_FULFILLMENT: Start Picking
    IN_FULFILLMENT --> PACKED: Packing Complete
    PACKED --> SHIPPED: Label Created
    SHIPPED --> DELIVERED: Delivery Confirmed
    DELIVERED --> [*]

    BACKORDER --> INVENTORY_RESERVED: Stock Available
    CANCELLED --> [*]

L3: SLA Management

Purpose: Ensure orders meet delivery commitments

SLA Monitoring:

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@Component
public class SLAMonitor {

    @Scheduled(fixedDelay = 60000) // Every minute
    public void checkSLAs() {
        List<Order> activeOrders = orderRepository.findActive();

        activeOrders.forEach(order -> {
            SLAStatus status = calculateSLAStatus(order);

            if (status.isAtRisk()) {
                // Escalate
                escalationService.escalate(
                    EscalationRequest.builder()
                        .orderId(order.getId())
                        .reason(status.getRiskReason())
                        .deadline(order.getSLADeadline())
                        .suggestedAction(status.getSuggestedAction())
                        .build()
                );
            }

            if (status.isBreached()) {
                // Alert and compensate
                alertService.sendSLABreachAlert(order);
                compensationService.initiate(order);
            }
        });
    }
}

4.6 L2: Modification & Cancellation

L3: Order Modification

Purpose: Handle changes to orders before fulfillment

Modification Rules:

• Allowed until “Released to Warehouse” state
• Address changes allowed until “Packed”
• Quantity increases require new payment authorization
• Some modifications trigger re-routing

Implementation:

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@Service
public class OrderModificationService {

    public Order modifyOrder(
        OrderId orderId,
        ModificationRequest request
    ) {
        Order order = orderRepository.findById(orderId);

        // Check if modification allowed
        if (!order.canModify(request.getType())) {
            throw new ModificationNotAllowedException(
                order.getStatus(),
                request.getType()
            );
        }

        // Start saga for complex modifications
        if (request.requiresSaga()) {
            return modificationSaga.execute(order, request);
        }

        // Simple modifications
        order.apply(request);
        orderRepository.save(order);

        eventPublisher.publish(
            new OrderModifiedEvent(order, request)
        );

        return order;
    }
}

L3: Cancellation Processing

Purpose: Handle order cancellations with proper cleanup

Cancellation Flow:

1. Validate cancellation allowed
2. Stop fulfillment processing
3. Release inventory reservations
4. Reverse payment authorization
5. Cancel shipments if created
6. Notify customer
7. Update analytics

5. INTEGRATION CONTEXT MAP

5.1 Upstream Dependencies

graph LR
    CART[Shopping Cart] -->|Order Placement| OMS[Order Management]
    CS[Customer Service] -->|Order Inquiries| OMS
    MARKET[Marketplace] -->|External Orders| OMS

    style CART fill:#f9f,stroke:#333,stroke-width:2px
    style CS fill:#f9f,stroke:#333,stroke-width:2px
    style MARKET fill:#f9f,stroke:#333,stroke-width:2px
    style OMS fill:#bbf,stroke:#333,stroke-width:4px

5.2 Downstream Dependencies

graph LR
    OMS[Order Management] -->|Orchestrates| INV[Inventory]
    OMS -->|Orchestrates| PAY[Payment]
    OMS -->|Orchestrates| WMS[Warehouse]
    OMS -->|Orchestrates| SHIP[Shipping]

    style OMS fill:#bbf,stroke:#333,stroke-width:4px
    style INV fill:#f9f,stroke:#333,stroke-width:2px
    style PAY fill:#f9f,stroke:#333,stroke-width:2px
    style WMS fill:#f9f,stroke:#333,stroke-width:2px
    style SHIP fill:#f9f,stroke:#333,stroke-width:2px

Integration Patterns

Inventory Service (Orchestration):

• Pattern: Request-Response with Compensation
• Protocol: REST API + Events
• Compensation: Release reservations on failure

Payment Service (Orchestration):

• Pattern: Two-phase commit (Authorize/Capture)
• Protocol: REST API
• Compensation: Void authorization

Warehouse Service (Choreography):

• Pattern: Event-driven choreography
• Protocol: Kafka events
• Compensation: Cancel fulfillment tasks

6. ARCHITECTURAL IMPLEMENTATION

6.1 Saga Orchestration Architecture

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┌─────────────────────────────────────────────────────────┐
│                 Order Management Service                 │
│                                                          │
│  ┌────────────────────────────────────────────────┐     │
│  │            Saga Orchestrator                    │     │
│  │                                                 │     │
│  │  ┌──────────┐  ┌──────────┐  ┌──────────┐    │     │
│  │  │  Order   │  │ Payment  │  │Inventory │    │     │
│  │  │  Saga    │  │  Saga    │  │  Saga    │    │     │
│  │  └────┬─────┘  └────┬─────┘  └────┬─────┘    │     │
│  │       │             │             │           │     │
│  │  ┌────▼─────────────▼─────────────▼─────┐    │     │
│  │  │      Saga State Machine              │    │     │
│  │  │  ┌─────────────────────────────┐     │    │     │
│  │  │  │ States & Transitions        │     │    │     │
│  │  │  └─────────────────────────────┘     │    │     │
│  │  │  ┌─────────────────────────────┐     │    │     │
│  │  │  │ Compensation Stack          │     │    │     │
│  │  │  └─────────────────────────────┘     │    │     │
│  │  └───────────────────────────────────────┘    │     │
│  └────────────────────────────────────────────────┘     │
│                                                          │
│  ┌────────────────────────────────────────────────┐     │
│  │              Service Adapters                   │     │
│  │                                                 │     │
│  │  ┌──────────┐  ┌──────────┐  ┌──────────┐    │     │
│  │  │Inventory │  │ Payment  │  │Warehouse │    │     │
│  │  │ Adapter  │  │ Adapter  │  │ Adapter  │    │     │
│  │  └──────────┘  └──────────┘  └──────────┘    │     │
│  └────────────────────────────────────────────────┘     │
│                                                          │
│  ┌────────────────────────────────────────────────┐     │
│  │           Persistence & Events                  │     │
│  │                                                 │     │
│  │  ┌──────────────┐      ┌──────────────┐      │     │
│  │  │  PostgreSQL  │      │    Kafka     │      │     │
│  │  │   (Orders)   │      │   (Events)   │      │     │
│  │  └──────────────┘      └──────────────┘      │     │
│  └────────────────────────────────────────────────┘     │
└─────────────────────────────────────────────────────────┘

6.2 Technology Stack

6.3 Performance Characteristics

7. BUSINESS VALUE & METRICS

7.1 Key Performance Indicators (KPIs)

7.2 Business Impact Analysis

Financial Impact

• Revenue Enablement: $500M annual GMV processed
• Cost Reduction: 15% reduction in fulfillment costs
• Error Prevention: $2M saved from reduced errors
• Efficiency Gains: 25% improvement in order throughput

Operational Impact

• Automation: 95% orders fully automated
• Exception Reduction: 60% fewer manual interventions
• Scalability: Supports 10x order volume growth
• Flexibility: Multi-channel, multi-warehouse support

8. RISK ASSESSMENT & MITIGATION

8.1 Technical Risks

8.2 Business Risks

9. EVOLUTION ROADMAP

9.1 Phase 1: Core Capabilities (Q1 2025) ✅

• ✅ Basic order processing
• ✅ Saga orchestration
• ✅ State management
• ✅ Integration framework

9.2 Phase 2: Advanced Features (Q2 2025)

• 🔄 ML-based routing optimization
• 🔄 Predictive SLA management
• 🔄 Advanced fraud detection
• 🔄 Dynamic pricing integration

9.3 Phase 3: Intelligence (Q3 2025)

• 📋 AI-powered order orchestration
• 📋 Predictive cancellation prevention
• 📋 Automated exception handling
• 📋 Customer behavior analysis

9.4 Phase 4: Platform Evolution (Q4 2025)

• 📋 Microservices decomposition
• 📋 Global order management
• 📋 Real-time optimization
• 📋 Autonomous fulfillment

10. TEAM & GOVERNANCE

10.1 Domain Ownership

• Domain Owner: Fulfillment Operations
• Technical Lead: Platform Architecture
• Product Owner: Order Management

10.2 Service Level Agreements (SLAs)

• Availability: 99.99% uptime
• Response Time: p95 < 2 seconds
• Throughput: 1000 orders/minute
• Support: 24/7 on-call rotation

10.3 Change Management

• API Versioning: Semantic versioning
• Deprecation Policy: 6-month notice
• Testing Requirements: 85% coverage
• Deployment: Blue-green with canary

Document Version: 1.0.0 Last Updated: 2025-01-20 Status: APPROVED Next Review: 2025-04-20