All You Should Know About Magento 2 Multi-Source Inventory

Do you hold an eCommerce store? Is it tough to manage the inventory of your online business? With the most recent arrival of the Magento 2.3 form, Magento 2 has also introduced MSI that is called the Multi-Source Inventory for stock administration. An inquiry may emerge to numerous clients like for what reason do you truly require a Magento 2 Multi-Source Inventory? All things considered; it was hard to deal with the multi-source stock all from a solitary site. The recent trend of inventory management with multiple channels was on a high peak with Magento.

In general, a Magento e-commerce website sells different items in variant countries where it stores specific products available in various locations. This can be a vital tool for managing your eCommerce inventory. In this article, we will be taking a look at the Multi-source inventory management extension by Magento 2 and how it can help you to boost your eCommerce store thereby boosting the sales.

What is MSI (Magento 2 Multi-Source Inventory)?


Image Source: SlideShare.

Multi-Source Inventory is the latest inventory management module being used for supporting multiple sources. In the present scenario, the Magento codebase modules are 483,254 lines of PHP code but the reality is MSI takes 46,844 lines.  MSI extension provides business solutions for improving the inventory management by enabling the store admins to manage their inventory within single or many other locations. It also gives us better checkout protection.

With the aid of inventory management, you can bring new stocks, sources and quantities updates by increasing the new deals channels. Other than this, MSI also checks checkout execution that is brought about by the source choice calculation. In this manner, you need to enhance the checkout page by limiting the surrendered truck for your site. Let us look at a few MSI concepts to understand it even better.

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Features of Magento 2 Multi-Source Inventory

With the assistance of MSI, it turns out to be simple for the store administrators to deal with the stock with different distribution center areas. MSI supports multiple product types to be it simple, download, bundle or virtual. Among this, it also supports automatic product shipment from different locations for completing the order that is based on shipping cost, balanced inventory and much more.

  • The admin can enable both single-sourcing along with more than single products. Besides, for multisource, group item type isn’t bolstered.
  • Create an endless number of sources along with locations be it a storefront or warehouse with the available shipping choices.
  • Associate your stock to the sales channels for accurate management as per the priorities.
  • Override and re-deal with the sources that match request shipments.
  • Halfway and conveyed shipment from different areas.
  • License your requests to have numerous location shipping.
  • Track, update or move the stock amounts for every single source.
  • Set the notifications for non-available or salable inventory with the backorders.
  • Build a customized algorithm for different orders that match the sales channels.
  • Easily work with the third-party system and warehouse management by using MSI APIs.

An Installation Guide on Multi-Source Inventory for Magento 2.3

Here’s the whole guide for a detailed installation guide to MSI.


At first, you need to download the new release of Magento 2.3.


Select the root of Magento 2.3 from the terminal. After this, run the composer install.


Repository update required for installing PHP 7.2 and Run the given commands.



Install all the dependencies of Magento 2.3 and PHP 7.2 by making use of the following given commands.


After doing this, you are now required to run the compose install again in order to check whether the Magento has been installed successfully or not.


The new database required in your PhpMyAdmin in order to install the Magento.



Run the below-given command to deploy the sample data into your Magento 2.3

You can also create a new account for getting a private key as a password and public key as a username and a for the login credentials.


Finally, install MSI in Magento 2.3 by entering the given commands.


Voila! Now that you have successfully installed Magento 2.3 MSI.

We’ll help you to gain the potential benefits of the Multi-Source Inventory (MSI) in Magento 2 in an efficient manner, we will guide you on the most effective method to utilize this module effortlessly.

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MSI Sources

Sources are termed as the physical locations where the stocks and products are places. These locations can be anywhere among the warehouses, distribution centers, brick-mortar stores or drop shippers.

For every area, you have to make alternate or corresponding sources. From the option of  ‘Manage Sources’, you can make endless physical product locations by selecting the ‘Add New Source’ button. The source can be anything from a warehouse to a brick-and-mortar store.


You can edit, enable or disable, the name, describe latitude & longitude and even add a description. It should be noted that all the prerequisites are maintained in order to get a source for code and name.


MSI Stocks

Stocks are a kind of virtual product inventory management for different sources of sales networks. Every stock is represented as a sale channel/website with the updated inventory and product quantity.

Select the ‘Manage Stock’ and select ‘Add New Stock’ to create stocks for your Magento websites.


MSI Salable Quantity and Sales Channels

Salable quantity is defined as the virtual number of calculable product inventory. Magento MSI represents a Scalable Quantity through the Product grid where you have Sources and Stocks for distributing the products. The value gets displayed in a column next to Quantity per product for Multisource purchasers. After you link the sources to the stocks, each stock is specified with the number of products per source and product which will be further linked to a corresponding sale channel.


MSI Source Selection Algorithm

The source choice calculation is utilized for breaking down which blend among the sources and send is viewed as the best for organizing the source request. The algorithms also help to suggest appropriate sources, available stocks and amount of shipping deduction during the order shipment.

  • Calculate the salable quantity of all the assigned source as per the stock.
  • Eliminate the threshold of Out-Of-Stock amount from the salable products
  • Reserve inventory quantities at the checkout by deducing in-stock inventory at order processing and shipment.
  • Full-time backorder support with the enhanced options to subtract the negative thresholds.
At the point when you wish to include or alter an item, you are required to dole out the assets to that item. Additionally, you can fill in the accessible amount of the item and at a similar minute, you can utilize the default notice for the amount.


MSI Partial Shipment and Drop Shipping

The MSI extension helps to ship it partially and for specific products, the users are asked to be delivered direct by splitting the shipment and choosing another stock for faster delivery. Also, you can add a drop shipping partner for having a look at the available products in your store. There are multiple ways to get your desired functionality in the present or future times. Above all, there are several ERP platforms that are designed to get a deal with various physical sources of products. MSI has got both extremely powerful alternatives for small as well as big businesses.

The marketable amount is changed when another request is set and paid. The source choice calculations are utilized to make a shipment so as to compute when another request ought to be conveyed from which sources. It should be noted that Magento 2.3 allows you to select any one algorithm for source selection that is based upon a few priorities to get them specified manually.

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Here, we come to the end of the article. In general, MSI offers a huge improvement to the Magento 2 architecture by introducing an ability to link different sources to the store and using the algorithm of selection to choose a source which is depending on variant conditions. By doing so, it allows you to make the delivery as efficient as possible.

Presently, there are tons of third-party extensions that provide similar functionalities. Still, after the release of the new out-of-box feature, it is redundant to use them. Magento possesses strong community support and henceforth in case of errors that occur through the default functionality, it is always an easy solution to find the one by making use of any third-party extensions that may lead to compatibility issues. So, what are you waiting for? Try your hands on the new Magento 2 Multi-Source Inventory management extension now and avail the exciting and best features for your e-commerce store by keeping an eye on all your stocks and sales. Till then – keep learning!

 This article is written by Shira Gray. She is working as a Business Development Executive at Magento Development Company - She writes about emerging technologies. Being a tech geek, she keeps a close watch over the industry focusing on the latest technology news and gadgets.
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Souvik BanerjeeWeb developer and SEO specialist with 20+ years of experience in open-source web development, digital marketing, and search engine optimization. He is also the moderator of this blog "RS Web Solutions (RSWEBSOLS)".