New feature Multi Source Inventory (MSI) in Magento 2

Adobe Commerce has consistently stood out as an e-commerce platform offering robustness, flexibility, and introducing new features to support businesses of all sizes. One such feature is the introduction of Multi-Source Inventory (MSI) which is a game changer for retailers operating across multiple channels and locations. This feature is designed to optimize inventory management, enhance operational efficiency, and improve customer satisfaction.

Understanding Multi Source Inventory (MSI)

MSI is a powerful functionality integrated into Magento 2 and Adobe Commerce. It enables merchants to manage their inventory across multiple physical locations from a single interface. Before MSI, the store owner had to rely on third-party extensions or make customizations to handle multi-location inventory. With MSI integration built inside Magento 2 it has made this process easier, allowing for more accurate inventory management and reduced operational costs. It was introduced in 2.3 version with some major changes like db_schema.

Models used by MSI

Magento_Inventory Magento_InventoryAdminUi Magento_InventoryApi Magento_InventoryBundleProduct Magento_InventoryBundleProductAdminUi Magento_InventoryCatalog Magento_InventorySales Magento_InventoryCatalogAdminUi Magento_InventoryCatalogApi Magento_InventoryCatalogSearch Magento_InventoryConfigurableProduct Magento_InventoryConfigurableProductAdminUi Magento_InventoryConfigurableProductIndexer Magento_InventoryConfiguration Magento_InventoryConfigurationApi Magento_InventoryGroupedProduct Magento_InventoryGroupedProductAdminUi Magento_InventoryGroupedProductIndexer Magento_InventoryImportExport Magento_InventoryIndexer Magento_InventoryLowQuantityNotification Magento_InventoryLowQuantityNotificationAdminUi Magento_InventoryLowQuantityNotificationApi Magento_InventoryMultiDimensionalIndexerApi Magento_InventoryProductAlert Magento_InventoryReservations Magento_InventoryReservationsApi Magento_InventoryCache Magento_InventorySalesAdminUi Magento_InventorySalesApi Magento_InventorySalesFrontendUi Magento_InventoryShipping Magento_InventorySourceDeductionApi Magento_InventorySourceSelection Magento_InventorySourceSelectionApi Magento_InventoryShippingAdminUi Magento_InventoryDistanceBasedSourceSelectionAdminUi Magento_InventoryDistanceBasedSourceSelectionApi Magento_InventoryElasticsearch Magento_InventoryExportStockApi Magento_InventoryReservationCli Magento_InventoryExportStock Magento_CatalogInventoryGraphQl Magento_InventorySetupFixtureGenerator Magento_InventoryAdvancedCheckout Magento_InventoryDistanceBasedSourceSelection Magento_InventoryRequisitionList Magento_InventoryGraphQl Magento_InventoryBundleImportExport Magento_InventoryBundleProductIndexer Magento_InventoryInStorePickupApi Magento_InventoryInStorePickupAdminUi Magento_InventoryInStorePickup Magento_InventoryInStorePickupGraphQl Magento_InventoryInStorePickupShippingApi Magento_InventoryInStorePickupQuoteGraphQl Magento_InventoryInStorePickupSales Magento_InventoryInStorePickupSalesApi Magento_InventoryInStorePickupQuote Magento_InventoryInStorePickupShipping Magento_InventoryInStorePickupShippingAdminUi Magento_InventoryInStorePickupFrontend Magento_InventoryInStorePickupMultishipping Magento_InventoryInStorePickupSalesAdminUi Magento_InventoryInStorePickupWebapiExtension Magento_InventoryCatalogFrontendUi Magento_InventoryConfigurableProductFrontendUi Magento_InventorySwatchesFrontendUi Magento_InventoryVisualMerchandiser Magento_InventoryWishlist Magento_InventoryCatalogSearchBundleProduct Magento_InventoryCatalogSearchConfigurableProduct Magento_InventoryQuoteGraphQl

Disabling this feature

Some store owner doesn’t want Multi-source inventory in their system. They can disable the MSI by using a command. This will include all the above modules. He needs to disable each of these modules from the list.

Challenges

Some of the challenges faced by the store owner after upgrading to 2.3 from the below versions were the existing plugins/extensions developed by their developer which was supporting the old way of managing inventory. The plugins which were had some part in managing or using the product’s inventory. This goes the same for the plugins/extensions providers like Amasty, Cedcommerce, Mageplaza etc where they had to roll out a new upgrade right after the launch of 2.3 version for all plugins which involved in product inventory processing.

Key Features

• Stock Management Across Multiple Locations: This allows a business owner to define multiple sources such as warehouses, stores and distribution centres. The products are assigned to these sources which enable the precise tracking of inventory levels at each warehouse.
• Source Selection Algorithm (SSA): When an order arrived inside Magento. The system automatically determines which will be the best source that can fulfil this order. This is calculated based on the distance to the shipping address and stock availability. This helps to optimize shipping cost and time, benefiting both the customer and the merchant.
• Salable Quantity Concept: The MSI introduces a concept called salable quantity, this reflects the available inventory minus reservations for orders which are not shipped yet. This provides a more accurate figure of available stock, enhancing reliability in stock levels for the customers.
• Enhanced Inventory Management on the Admin Panel: Magento 2.3 and above has been upgraded to support the MSI. The store owner can easily assign products to different sources. He can set a threshold for notification if qty is low.

Benefits for Businesses

The introduction of MSI in Magento 2 Adobe Commerce offers several compelling benefits for e-commerce businesses:

1. Improved Inventory Accuracy: By managing inventory across multiple sources, businesses can reduce the risk of overselling and out of stock problems, ensuring a better shopping experience for customers.
2. Optimized Fulfilment: These improvements help in selecting the most efficient source for order fulfilment. This leads to faster delivery times and reduced shipping costs.
3. Scalability and Flexibility: Supports business growth, as it allows to addition of new inventory sources without causing any issues to existing ones. It offers the flexibility needed to adapt to changing business models and customer demands.
4. Enhanced Customer Satisfaction: Faster shipping times, accurate stock levels, and better order processing contribute to a positive shopping experience, building customer loyalty and trust which is an important while doing any business.

Implementing MSI in Adobe Commerce

Setting up MSI requires careful planning and understanding if the store owner needs it or not. The store owner needs to figure out from where will to product come and how will they be assigned to the Inventory source. It will be better to consult someone if you are not familiar with this. Especially one who is an expert in Magento 2.

Conclusion

Adobe Commerce’s Multi-Source Inventory is a nice upgrade done which gives a big step forward in Online Inventory management. This feature helps businesses to handle stocks from different locations, all from one system. This makes it easier to run the business smoothly and meet customer needs. Know more about other features in Magento 2, check our category Feature.