diff --git a/pom.xml b/pom.xml
index c944f87..1040229 100644
--- a/pom.xml
+++ b/pom.xml
@@ -91,7 +91,7 @@
 		<dependency>
 			<groupId>com.github.Podzilla</groupId>
 			<artifactId>podzilla-utils-lib</artifactId>
-			<version>v1.1.11</version>
+			<version>v1.1.12</version>
 		</dependency>
 	</dependencies>
 	<build>
diff --git a/src/main/java/com/podzilla/order/messaging/OrderConsumer.java b/src/main/java/com/podzilla/order/messaging/OrderConsumer.java
index 67289ef..13e8225 100644
--- a/src/main/java/com/podzilla/order/messaging/OrderConsumer.java
+++ b/src/main/java/com/podzilla/order/messaging/OrderConsumer.java
@@ -9,6 +9,7 @@
 import com.podzilla.mq.events.OrderPackagedEvent;
 import com.podzilla.mq.events.WarehouseOrderFulfillmentFailedEvent;
 import com.podzilla.mq.events.WarehouseStockReservedEvent;
+import com.podzilla.mq.events.OrderDeliveryFailedEvent;
 import com.podzilla.order.model.Address;
 import com.podzilla.order.model.Order;
 import com.podzilla.order.model.OrderProduct;
@@ -73,6 +74,16 @@ public void trackOrder(final BaseEvent payload) {
                     (CartCheckedoutEvent) payload;
             handleCartCheckoutEvent(cartCheckedoutEvent);
         }
+        if (payload instanceof OrderDeliveryFailedEvent) {
+            OrderDeliveryFailedEvent orderDeliveryFailedEvent =
+                    (OrderDeliveryFailedEvent) payload;
+            log.info("❌ Order delivery failed for order: {}, reason: {}",
+                    orderDeliveryFailedEvent.getOrderId(),
+                    orderDeliveryFailedEvent.getReason());
+            orderService.updateOrderStatus(
+                    UUID.fromString(orderDeliveryFailedEvent.getOrderId()),
+                    OrderStatus.DELIVERY_FAILED);
+        }
     }
 
     private void handleWarehouseStockReservedEvent(
@@ -133,7 +144,7 @@ private void handleOrderAssignedToCourierEvent(final OrderAssignedToCourierEvent
                 UUID.fromString(orderAssignedToCourierEvent.getOrderId()),
                 new Order.Builder()
                         .courierId(UUID.fromString(orderAssignedToCourierEvent.getCourierId()))
-                        .status(OrderStatus.ORDER_ASSIGNED_TO_COURIER)
+                        .status(OrderStatus.ASSIGNED_TO_COURIER)
                         .build());
     }
 
diff --git a/src/main/java/com/podzilla/order/model/OrderStatus.java b/src/main/java/com/podzilla/order/model/OrderStatus.java
index 5b56052..7a333c1 100644
--- a/src/main/java/com/podzilla/order/model/OrderStatus.java
+++ b/src/main/java/com/podzilla/order/model/OrderStatus.java
@@ -4,9 +4,11 @@ public enum OrderStatus {
     PENDING,
     PLACED,
     PACKAGED,
-    ORDER_ASSIGNED_TO_COURIER,
+    ASSIGNED_TO_COURIER,
     OUT_FOR_DELIVERY,
     DELIVERED,
+    FULFILLMENT_FAILED,
+    DELIVERY_FAILED,
     CANCELLED,
 }
 
diff --git a/src/main/java/com/podzilla/order/service/OrderService.java b/src/main/java/com/podzilla/order/service/OrderService.java
index 6444df1..76eb036 100644
--- a/src/main/java/com/podzilla/order/service/OrderService.java
+++ b/src/main/java/com/podzilla/order/service/OrderService.java
@@ -1,10 +1,11 @@
 package com.podzilla.order.service;
 
+import com.podzilla.mq.events.DeliveryAddress;
 import com.podzilla.mq.events.OrderCancelledEvent;
 import com.podzilla.mq.events.OrderItem;
 import com.podzilla.mq.events.OrderPlacedEvent;
-import com.podzilla.mq.events.DeliveryAddress;
 import com.podzilla.order.dtos.LocationDTO;
+import com.podzilla.order.exception.InvalidActionException;
 import com.podzilla.order.exception.NotFoundException;
 import com.podzilla.order.messaging.OrderProducer;
 import com.podzilla.order.model.Order;
@@ -12,17 +13,15 @@
 import com.podzilla.order.model.OrderProduct;
 import com.podzilla.order.model.OrderStatus;
 import com.podzilla.order.repository.OrderRepository;
+import com.podzilla.order.service.statusstrategy.OrderStatusStrategy;
+import com.podzilla.order.service.statusstrategy.OrderStatusStrategyFactory;
 import lombok.extern.slf4j.Slf4j;
 import org.springframework.beans.BeanUtils;
 import org.springframework.beans.factory.annotation.Autowired;
 import org.springframework.beans.factory.annotation.Value;
 import org.springframework.stereotype.Service;
 import org.springframework.web.reactive.function.client.WebClient;
-import com.podzilla.order.service.statusstrategy.OrderStatusStrategy;
-import com.podzilla.order.service.statusstrategy.OrderStatusStrategyFactory;
-
 import java.time.LocalDateTime;
-import java.util.ArrayList;
 import java.util.List;
 import java.util.Optional;
 import java.util.UUID;
@@ -148,17 +147,23 @@ public Order cancelOrder(final UUID id, final String reason) {
                 "Order not found with id: " + id);
 
         Order order = existingOrder.get();
-        order.setStatus(OrderStatus.CANCELLED);
-        order.setUpdatedAt(LocalDateTime.now());
-        orderRepository.save(order);
-        OrderCancelledEvent orderCancelledEvent =
-                OrderCancelledEvent.builder()
-                        .orderId(order.getId().toString())
-                        .customerId(order.getUserId().toString())
-                        .reason(reason)
-                        .build();
-        orderProducer.sendCancelOrder(orderCancelledEvent);
-        return order;
+        OrderStatus status = order.getStatus();
+        if (status == OrderStatus.PENDING || status == OrderStatus.PACKAGED || status == OrderStatus.PLACED) {
+            order.setStatus(OrderStatus.CANCELLED);
+            order.setUpdatedAt(LocalDateTime.now());
+            orderRepository.save(order);
+            OrderCancelledEvent orderCancelledEvent =
+                    OrderCancelledEvent.builder()
+                            .orderId(order.getId().toString())
+                            .customerId(order.getUserId().toString())
+                            .items(getOrderItems(order))
+                            .reason(reason)
+                            .build();
+            orderProducer.sendCancelOrder(orderCancelledEvent);
+            return order;
+        }
+        log.warn("Order with id: {} cannot be cancelled", id);
+        throw new InvalidActionException("Order cannot be cancelled with id: " + id);
     }
 
     public Order updateOrderStatus(final UUID id,
@@ -204,17 +209,12 @@ private void checkNotFoundException(final Object value,
     }
 
     private List<OrderItem> getOrderItems(final Order order) {
-        List<OrderItem> orderItems = new ArrayList<>();
         List<OrderProduct> orderProducts = order.getOrderProducts();
-        for (OrderProduct product : orderProducts) {
-            OrderItem orderItem = new OrderItem();
-            orderItem.setProductId(product.getId().toString());
-            orderItem.setQuantity(product.getQuantity());
-            orderItem.setPricePerUnit(product.getPricePerUnit());
-            orderItems.add(orderItem);
-        }
-        return orderItems;
+        return orderProducts.stream()
+                .map(product -> new OrderItem(
+                        product.getProductId().toString(),
+                        product.getQuantity(),
+                        product.getPricePerUnit()))
+                .toList();
     }
-
-
 }