Magento 2 MSI User Guide to Manage Multi-Source Inventories

• What is a Magento 2 MSI User Guide?

• Importance of Multi-Source Inventory for Magento Stores

• 15 Features of Magento Multi Source Inventory for Ecommerce Stores

• How MSI in Magento Works for an Ecommerce Inventory Management?

• Use Cases of Magento 2 Multi Source Inventory for Ecommerce Stores

• Troubleshooting Common Issues to Implement Magento 2 MSI

• FAQs

• Summary

What is a Magento 2 MSI User Guide?

A Magento 2 MSI User Guide helps store owners manage Multi-Source Inventory (MSI) in Magento 2. It provides clear steps to set up and configure inventory sources.

Users can link products to different sources and track stock levels accurately. The guide covers features like stock reservation and inventory adjustments. It ensures that inventory data stays up-to-date and efficient.

The guide also explains how to manage backorders and set stock thresholds. It shows users how to improve inventory accuracy and reduce errors. With the MSI features, store owners can streamline their order fulfillment process. By following the guide, merchants can boost their inventory management and improve customer satisfaction.

Importance of Multi-Source Inventory for Magento Stores

1. Improved Stock Management & Default Inventory Management

Multi-Source Inventory (MSI) helps manage stock across multiple locations. It tracks product availability more accurately. Stores can allocate inventory to different warehouses or stores. Inventory visibility improves, reducing overselling or stockouts. You can move stock between sources to balance inventory. It ensures stock levels stay up to date.

2. Streamlined Order Fulfillment

MSI helps fulfill orders from the nearest source. It cuts shipping time and lowers costs. Orders go to the closest warehouse or store based on the customer’s location. It speeds up delivery and improves customer satisfaction. The system selects the best source automatically. It reduces order delays and ensures quicker shipments.

3. Better Customer Experience

With MSI, customers see real-time updates on stock levels. They know exactly what’s available. It builds trust and improves the shopping experience. Customers enjoy faster shipping due to local fulfillment. The system helps avoid out-of-stock issues and delays. A better experience leads to higher conversion rates.

4. Enhanced Reporting and Analytics

MSI improves reporting on inventory levels and stock movement. It helps store owners track sales and identify trends. Reports show which products are performing well. It allows for better inventory decisions. The guide explains how to track inventory performance. It helps optimize stock ordering and reduce excess inventory.

5. Scalability and Flexibility

MSI grows with your business. You can add more sources as needed. It supports multiple warehouses and retail locations. It allows for easier expansion, including international fulfillment. MSI helps you scale inventory management smoothly. It ensures flexibility as your business grows.

15 Features of Magento Multi Source Inventory for Ecommerce Stores

Feature	Explanation
Multiple Inventory Sources	Magento MSI lets stores manage stock across multiple locations. You can set up warehouses, retail stores, or fulfillment centers. It improves inventory tracking. It balances stock across different sources. The system ensures accurate stock allocation at all locations.
Inventory Reservation	Inventory reservation holds products when a customer places an order. It prevents overselling. The stock remains reserved until the order is processed. It ensures smooth order fulfillment. It is beneficial for high-demand products.
Source Selection Algorithms	Magento MSI uses algorithms to choose the best inventory source. It considers stock levels and customer location. The system selects the closest source for faster shipping. It reduces order fulfillment time and cost. The algorithm optimizes inventory use across locations.
Stock Levels Management	MSI allows you to set and manage stock levels at each source. It updates stock automatically with each sale. You can set low-stock alerts to avoid running out. It prevents stockouts and overstocking. The system ensures accurate inventory data across all locations.
Backorder Management	MSI handles Magento backorders effectively. Customers can order out-of-stock items for later delivery. The system notifies customers about backorder status. It helps prevent lost sales. This feature ensures that customers stay satisfied despite delays.
Product-Specific Sources	MSI allows you to assign specific products to different sources. It works well for stores with multiple locations. You can ensure the right products are available where needed. Products can be linked to the best sources. It improves inventory optimization.
Customizable Source Priorities	With MSI, you can set source priorities for order fulfillment. It lets you decide which source to use first. You can prioritize locations near the customer. It speeds up shipping times and reduces costs. Prioritizing sources improves order fulfillment efficiency.
Automatic Inventory Updates	MSI automatically updates inventory levels in real-time. Stock is adjusted as orders are placed. It ensures up-to-date data for product availability. The system prevents overselling or stockouts. Real-time updates improve inventory accuracy.
Advanced Reporting	MSI offers detailed reports on inventory and sales. You can track stock movement and identify trends. Reports can be customized for different metrics. It helps you make informed decisions. It improves inventory planning and stock optimization.
Cross-Source Stock Transfer	MSI allows you to transfer stock between sources. You can move inventory to meet demand at different locations. It balances stock across your warehouses. The system adjusts inventory levels automatically. Transfers ensure efficient inventory flow.
Multiple Shipping Methods	MSI supports different shipping methods for each source. You can choose the best delivery option based on location. The system helps control shipping costs. This flexibility improves order efficiency. Offering multiple shipping choices benefits the customer experience.
Inventory Visibility to Customers	MSI gives customers real-time inventory visibility. They can see stock levels across all sources. It increases trust and reduces customer frustration. It also helps customers make informed purchase decisions. Accurate visibility improves conversion rates.
Inventory Reservation for Checkout	MSI reserves stock during Magento checkout. It prevents items in the cart from being sold to other customers. The stock remains "locked" until the purchase is confirmed. It ensures a smoother checkout experience. Customers get the items they want without issues.
Integration with Third-Party Systems	MSI integrates with third-party systems like ERPs and warehouse management software. It keeps inventory data consistent across platforms. Integration reduces manual work and errors. It improves operational efficiency. The system scales with business growth.
Flexible Inventory Adjustment	MSI allows flexible inventory adjustments. You can update stock levels manually or automatically. The system tracks all changes to ensure data accuracy. Adjustments can be made for individual products or in bulk. This feature helps keep stock levels correct across all sources.

How MSI in Magento Works for an Ecommerce Inventory Management?

1. Set Up Magento 2 Multi-Source Inventory Sources

Start by setting up inventory sources in Magento 2. These sources can be warehouses, retail stores, or fulfillment centers. You can link multiple sources to one store. Each source represents a physical location. The system tracks stock levels at each location.

2. Assign Products to Sources

Once your sources are set, assign products to specific sources. Some products may be available in multiple locations. Others may be exclusive to one source. Assigning products ensures stock levels are tracked accurately. It helps decide where orders will be fulfilled.

3. Configure Stock Levels

Set stock levels for each product at every source. You can set minimum and maximum quantities. Magento updates stock levels automatically when an order is placed. It keeps inventory data accurate. It helps avoid stockouts or overstocking.

4. Enable Source Selection Algorithm

Magento 2 uses a source selection algorithm to fulfill orders. The algorithm looks at product availability and customer location. It automatically selects the best source. It helps with faster shipping and cost savings. You can also set priorities to customize the process.

5. Handle Magento Multi-Source Inventory Reservations

When an order is placed, the system reserves Magento inventory. It keeps the products in the cart from being sold to others. The reservation stays in place until the order is processed or canceled. It reduces order cancellations due to stock issues.

6. Manage Backorders

If an item is out of stock, Magento can still process a backorder. Customers are informed about the delay. They can choose to wait for the product. The system tracks backorders and updates customers when stock is available. This feature helps avoid lost sales opportunities.

7. Monitor and Adjust Levels of MSI in Magento 2.4

Regularly monitor stock levels across all sources. Magento provides real-time inventory tracking. It helps you stay on top of stock levels. If needed, adjust stock levels manually or transfer inventory between sources. It keeps your stock balanced and available where it's needed.

8. Streamline Order Fulfillment

When an order is placed, Magento selects the best source for fulfillment. It prioritizes the nearest source or one with the most stock. It speeds up shipping times and cuts costs. Order fulfillment becomes more efficient with MSI.

9. Use Advanced Reporting

Magento 2 MSI provides advanced reporting tools. You can track stock levels, sales trends, and backorders. These reports help you make smarter decisions about inventory. With this data, you can optimize stock management and improve efficiency.

10. Scale as Your Business Grows

As your business grows, Magento MSI makes scaling easy. You can add more warehouses or retail locations. The system will handle larger inventories and more sources. MSI supports multiple sales channels. It ensures your inventory management can grow with your business.

Use Cases of Magento 2 Multi Source Inventory for Ecommerce Stores

1. Multi-Warehouse Management

Magento MSI helps you manage multiple warehouses. You can track stock across different locations. Products are assigned to specific warehouses. It keeps inventory updated and accurate. The system chooses the best warehouse to fulfill orders based on proximity. It helps reduce shipping times and costs.

2. Simplified Drop Shipping

MSI makes drop shipping easier. When a product is out of stock, it can be sourced from a third-party supplier. Suppliers are treated as inventory sources. The system routes orders to the correct supplier. It speeds up Magento order processing and reduces handling time. It simplifies managing inventory from multiple suppliers.

3. Buy Online, Pick Up In-Store (BOPIS)

Magento MSI supports BOPIS. Customers can order online and pick up items in-store. Stores act as inventory sources. It provides local pick-up options for customers. It increases store traffic and improves customer satisfaction. Customers get their products faster.

4. Real-Time Stock Updates

MSI offers real-time inventory updates. Stock levels are adjusted automatically when orders are placed, or products are replenished. Customers see accurate stock information at all times. It prevents overselling or stockouts. It builds customer trust and ensures accurate availability.

5. Efficient Order Fulfillment

MSI improves order fulfillment. It selects the best source based on stock levels and location. Orders are fulfilled from the nearest or most optimal source. It reduces shipping times and costs. Customers receive their orders faster, improving their experience.

6. Managing Regional Sales Channels

MSI helps manage regional Magento sales channels. You can assign sources to specific regions. It allows for localized inventory management. It ensures stock is available based on regional demand. MSI balances supply across different locations, meeting local needs.

7. Handling Seasonal and Promotional Stock

MSI manages seasonal and promotional stock. You can assign inventory to specific events or sales. The system tracks stock for these periods. It ensures you don't run out of promotional products. It helps meet customer expectations during busy times.

8. International Sales Management

MSI simplifies international inventory management. You can set up sources in different countries or regions. The system manages local stock levels and supports international shipping. It helps optimize supply chains and boosts global sales performance.

9. Simplifying Returns Management

MSI streamlines returns management. When a product is returned, it goes back to the correct source. The system updates stock levels automatically. It ensures accurate inventory counts. Efficient returns management reduces stock loss and keeps operations running smoothly.

10. Customizing Order Routing for Specific Products

MSI allows custom order routing for specific products. Fragile or high-value items can be routed to special locations. The system ensures safe handling and correct fulfillment. It helps optimize shipping for different types of products. It gives you more control over order fulfillment.

Troubleshooting Common Issues to Implement Magento 2 MSI

Issue	Solution
Inventory not updating in real-time	Check if the MSI modules are properly enabled. Clear the cache and reindex. Ensure stock levels are correctly set. Verify if the source configuration is correct.
Products not assigned to sources	Go to the product edit page and assign the correct sources. Ensure sources have available stock. Save changes and refresh inventory.
Stock is not reflected after the order is placed	Check if the product’s salable quantity is set correctly. Ensure the source stock is updated automatically after order fulfillment. Reindex if necessary.
Unable to add or delete sources	Make sure the sources are enabled in the backend. Check user permissions for adding or editing sources. Refresh the page or clear the cache.
Orders not routed to the nearest source	Review the source selection algorithm settings. Ensure location and distance algorithms are configured. Check that stock levels are accurate in each source.
Error when managing stocks	Ensure the correct stock is linked to the sales channel. Check if there are conflicts in stock assignments. Reassign the stock to the appropriate source if needed.
Multiple orders causing inventory discrepancies	Verify that inventory reservations are enabled. Ensure stock is reserved when orders are placed. Check for any unprocessed cancellations or returns.
Magento MSI not reflecting in the frontend	Clear the cache and reindex. Ensure the MSI feature is activated and configured in the Magento admin panel. Verify that the correct stock is linked to the storefront.

FAQs

1. What is Magento 2.3 and how does it impact inventory management?

Magento 2.3 introduced Magento 2 MSI – multi source inventory. This feature allows control and tracking of inventory across multiple locations. The default source can be assigned to the main website, and inventory in Magento 2 is managed more efficiently. Magento 2 MSI enhances Magento inventory management by providing quantity per source.

2. How can I set up new source locations in Magento 2 MSI?

To add a new source, go to the Magento 2 admin panel. In the MSI functionality, select inventory locations and enter the details of the new inventory source. It enables better inventory management needs and allows you to manage stock more effectively. Ensure the default stock is assigned properly.

3. What is single source mode, and how does it affect inventory in Magento 2?

In single source mode, product inventory is tracked through one default source. You cannot manage multiple locations for stock. However, switching to Magento 2 multi-source inventory enables tracking of inventory across various locations and improves inventory management strategies.

4. How do I manage low stock notifications in Magento 2 MSI?

To handle low stock alerts, configure stock in Magento for each source. Set thresholds for when to receive notifications. It, with dedicated Magento hosting, helps prevent stockouts and ensures you have adequate inventory across all source locations. The guide for Magento provides step-by-step instructions on setting these alerts.

5. Can I disable MSI in Magento if I don’t need it?

Yes, you can disable MSI in Magento through the Magento admin panel. Simply disable the MSI functionality if you prefer to manage your inventory with the default inventory management system. It will switch the system back to using one stock for your entire Magento store.

6. What is the default source, and how does it work with Magento inventory?

The default source is where products are initially stored if no specific new source is assigned. Products can be assigned to the default source, and stock is updated accordingly. Inventory in Magento is controlled through this default stock, which helps maintain accurate stock levels across the system.

7. How do I ensure the tracking of inventory is accurate across multiple sources?

To accurately track inventory across sources, make sure all source locations and available inventory are properly configured in Magento 2 MSI. It enables real-time updates for each source location and provides clear visibility into product inventory. The guide for Magento 2 MSI offers a complete guide for Magento users to manage stock efficiently across multiple locations.

8. How does Magento 2.3.0 improve the inventory system in a Magento 2 store?

Magento 2.3.0 added Magento multi-source inventory (MSI). It improves the inventory system by allowing multiple source locations. MSI enables better control and tracking of inventory. It links the default source and the main website for accurate stock management. For help, check Magento Stack Exchange or the guide to Magento.

Summary

The Magento 2 MSI User Guide helps you manage inventory efficiently. With MSI, you can improve your store's performance. The benefits it offers are:

• Better Inventory Control: Track stock levels across multiple locations.

• Faster Order Fulfillment: Ship from the nearest source to save time.

• Real-Time Stock Updates: Get instant updates on inventory levels.

• Improved Customer Experience: Keep customers informed about stock availability.

Consider managed Magento hosting for optimized multi-source inventory management.