The digital-first economy demands a fundamental shift in how enterprises approach commerce. Customers today expect seamless shopping experiences across online, mobile and in-store channels. Meeting these expectations requires businesses to bridge the gap between legacy IT systems and modern commerce solutions.   

Connected commerce — powered by composable commerce architectures, distributed order management (DOM) and seamless store integration — enables enterprises to unify their operations, providing consistent customer experiences while optimizing backend efficiency.

This guide explores how to achieve this transformation and highlights critical resources to guide your journey.

1. What is Composable Commerce?

Composable commerce is the foundation of modern commerce, allowing businesses to design custom technology stacks tailored to their needs. Unlike traditional monolithic systems, it provides flexibility and agility through modular, best-of-breed solutions.

Key Principles

• MACH Architecture: Microservices, API-first, Cloud-native, and Headless technologies ensure scalability, adaptability, and future-proofing.
• Modularity: Businesses can swap or upgrade individual components as requirements evolve.
• Focus on Innovation: Composable commerce accelerates innovation, enabling businesses to meet customer demands faster.   

Benefits

• Enhanced agility to respond to market trends.
• Superior customer experiences through tailored solutions.
• Long-term cost savings (both CAPEX and OPEX)
• Reduced dependency on a single vendor.

2. Distributed Order Management (DOM): Orchestrating Unified Commerce

A Distributed Order Management (DOM) system is vital for enterprises managing orders across multiple channels, fulfillment centers and inventory locations. It ensures smooth operations and consistent customer experiences, regardless of order complexity.    

Key Features of DOM

• Order Aggregation: Centralizes orders from e-commerce platforms, stores, marketplaces and more.
• Smart Fulfillment: Dynamically routes orders to the most efficient fulfillment source based on inventory and customer location.
• Omnichannel Flexibility: Supports cross-channel experiences such as buy online, pick up in-store (BOPIS) and ship-from-store.
• Real-Time Insights: Provides accurate inventory visibility and order status updates across the entire network.

Why DOM is Crucial

With the growing complexity of global commerce, DOM enables enterprises to maintain operational efficiency while exceeding customer expectations. It acts as the backbone of connected commerce, bridging online and offline operations.

3. Seamless Store Integration in Connected Commerce

Seamless store integration is the final piece of the connected commerce puzzle. By integrating physical stores into the digital ecosystem, businesses can create truly unified experiences that blur the lines between online and offline channels.

Key Aspects of Seamless Store Integration

• Unified Inventory Management: Connect in-store inventory with digital systems to provide real-time availability across all channels. Customers can see what’s in stock locally, enhancing convenience and reducing frustration.   
• Omnichannel Fulfillment: Enable flexible shopping journeys such as BOPIS, ship-to-store, and in-store returns for online purchases. This drives foot traffic to physical stores while enhancing customer satisfaction.   
• In-Store Digital Experiences: Leverage mobile apps, QR codes, and kiosks to bridge digital and in-store shopping. Customers can access online catalogs, personalized offers, or self-checkout solutions, enhancing their in-store experience.   
• Integrated Data and Analytics: Gather insights from in-store interactions to refine overall strategies, including merchandising, staffing, and marketing. Seamlessly combining in-store and online data creates a 360-degree view of the customer journey.   

Benefits

• Increased sales opportunities through integrated inventory and fulfillment.
• Greater customer loyalty, driven by convenience and consistency.
• Operational efficiencies through better resource allocation and stock management.

4. Potential Drawbacks of Composable Commerce and Connected Commerce

While composable commerce and connected commerce offer many advantages, enterprises must consider potential challenges:

Complexity of Implementation:

• Integrating multiple best-of-breed solutions requires significant technical expertise and robust project management.
• Initial setup costs and time investments can be higher than with monolithic systems.

Ongoing Maintenance:

• Managing updates, patches and compatibility across a modular stack requires continuous monitoring and skilled IT resources.
• Vendor management can become complex as businesses work with multiple solution providers.

Data Silos in Integration:

• Poorly implemented integrations can create new silos, negating the benefits of a unified commerce strategy.
• Real-time data synchronization across platforms may face latency or inconsistency issues.

Cost Considerations:

• While composable commerce can reduce long-term costs, the initial investment may be a barrier for some enterprises.
• Ongoing subscription fees for multiple tools may add up over time.

Change Management:

• Shifting from legacy systems to modern platforms requires cultural adaptation within the organization.
• Staff may resist change or face difficulties in adapting to new processes and technologies.

5. Real-Life Impact of Connected Commerce and Distributed Order Management

The implementation of connected commerce and distributed order management (DOM) solutions has led to measurable improvements in key performance indicators (KPIs) for many companies.

Below are examples of how these technologies have driven positive business outcomes:

Revenue Growth

Case Study: Global Fashion Retailer

After integrating a connected commerce platform with a DOM system: 

• Online Sales Growth: Increased by 28% in the first 12 months due to seamless omnichannel shopping experiences.
• Average Order Value (AOV): Improved by 15%, as customers were more likely to add items during omnichannel journeys like buy online, pick up in-store (BOPIS). 

Improved Fulfillment Efficiency

Case Study: Large Electronics Retailer 

By implementing a DOM solution: 

• Order Fulfillment Speed: Improved by 30%, reducing delivery times from an average of 5 days to 3.5 days.
• Fulfillment Cost Savings: Achieved 20% cost reduction by optimizing inventory allocation and routing orders to the most cost-effective fulfillment centers.
• BOPIS Adoption: Grew from 5% to 22% of total orders, further reducing last-mile delivery costs. 
  
  

Inventory Accuracy and Stock Optimization

Case Study: Multinational Consumer Goods Company 

After integrating a real-time inventory management system as part of a connected commerce strategy: 

• Inventory Accuracy: Increased from 85% to 98%, reducing stockouts and overstocks.
• Sell-Through Rate: Improved by 18%, enabling better turnover of inventory.
• Lost Sales Reduction: Reduced by 25%, as customers could confidently purchase in-stock items across all channels.

Enhanced Customer Satisfaction

Case Study: Regional Grocery Chain

Through seamless store integration and enhanced omnichannel capabilities: 

• Customer Retention Rate: Improved by 12%, driven by consistent cross-channel shopping experiences.
• Net Promoter Score (NPS): Increased by 15 points within 6 months of implementation due to faster deliveries and in-store pickups. 
• Cart Abandonment Rate: Decreased by 22%, as customers found inventory availability and fulfillment options transparent and reliable.

Expansion to New Markets

Case Study: Direct-to-Consumer (DTC) Brand

With a composable commerce architecture enabling scalability:

• Global Market Entry: Launched in 5 new countries within 6 months due to flexible integration with local payment providers and logistics partners.
• Revenue Contribution from New Markets: New regions accounted for 18% of total revenue within the first year. 

Operational Cost Reduction

Case Study: Sporting Goods Retailer

By replacing legacy systems with connected commerce and DOM: 

• Operational Costs: Reduced by 25%, mainly through automation of manual processes like order allocation and real-time inventory updates.
• IT Costs: Lowered by 30% by adopting cloud-native solutions that required less on-premise infrastructure and maintenance. 

Example KPIs for Measuring Success

Enterprises implementing connected commerce and DOM solutions should track the following KPIs to gauge their impact:

By tracking and analyzing these KPIs, businesses can continuously optimize their connected commerce strategy and ensure a positive ROI from their investments. These measurable improvements illustrate the transformative potential of adopting a unified, customer-focused approach to commerce operations.

6. Getting Started with Actindo

Connected commerce, supported by composable commerce, distributed order management, and seamless store integration, offers the flexibility and scalability enterprises need to meet modern customer demands.

However, businesses must carefully navigate the complexities and challenges of implementation to maximize value. By using this guide, you can build a unified commerce platform that is both future-ready and customer-focused, ensuring your business remains competitive in the evolving digital landscape. 

Actindo’s Commerce Operations Platform enables full process orchestration from online or offline orders to the ERP and all data systems. It features powerful capabilities including a class-leading distributed order management system. 

This gives commerce ops leaders total control of all their marketplaces, channels, orders, and data, so that they can plan better, grow faster, sell more, and waste less, becoming leaders in unified commerce.  

Our mission is to enable omnichannel brands and retailers like Nintendo of Europe, ALDI E-Commerce and more to deliver exceptional customer experiences. We do this by adding speed, flexibility and scalability to order management and all connected systems and channels. 

>> Go to Platform Overview <<