How To Integrate MSI Inventory Management in Magento 2?

In today’s time, when the pandemic is dominating the world, people have shift to online shopping from physical shopping through stores and that is the reason that many companies are shifting their business online and getting their products register on different e-commerce portals.

Among different platforms, Magento is consider to be one of the leading platforms for e-Commerce brands which helps to increase the overall productivity and also provides the developers with so many advance features. And this is the reason that companies start to hire Magento developers for their firms to have full control of their e-commerce business.

Now coming back to the features offer by Magento, one of the best features they offer is Multi-Source Inventory which allows the business owners to control the inventory as well as sales channels for single or multiple stores. Magento Development Company start briefing their customers about this latest inventory management module to control inventory of multiple locations at once. This allows the owners to extend their business from length to breadth as they have a module to control the operations.


It is such a module through which the business owners can handle the inventory and operation of multiple locations without having any third-party extensions or additional platforms.

One can easily link a different number of sources of inventory to single or multiple websites, whatever is require. Now, let’s understand some of the concepts of the Multi-Source Inventory in Magento 2 in detail:

  • Stocks

Stock is a term use to define the stable relationship between the multiple resources and the relate web stores. Each web store basically refers to the sales channel to which the stock is directly relate.

  • Sources

Sources refer to the location where exactly your product is place like in warehouses or distribution centers and similarly others. So, Magento by default provides a single source by the name of the default source. Here, multiple sources can be add as per the given Warehouse, or it can also be a single store or source for the Magento.

  •  Sales Channels

As mention above, the Sales channel refers to the end-point which means the Magento website where the sales happen actually, and it is directly relate to the Stock.

  • Saleable Quantity

In layman’s language, this term actually refers to the total sum of the stocks which immediately gets update when the sale happens or is process. But when you look into the product grid in Magento, then there are two terms mention- Quantity and Saleable Quantity. Let’s understand now how one is different from the other.

Actually, quantity represents the total stock with the quantity order so it is not the quantity that is deliver from the warehouse. A saleable quantity is the one that is not yet sold and is not part of the order quantity. Example- If one has a total of 10 qty in the stock and one of them is purchase but not yet deliver, so the saleable qty is 9 and quantity is 10. Hope the concept is clear now.

  • Source Selection Algorithm

This algorithm is basically meant for tracking the quantities of the salable product. It also calculates the number of sources and suggests the number of shipments along with maintaining a decent profit margin. They use different sources of data to have this algorithm which includes data of customers, products, delivery address, source, and stock quantity, and many more.


  1. Source Management keeps track of the movement of the products and whether they are shipp or store in the warehouse.
  2. Stock Management helps the owner to keep track of the require and maintain inventory.
  3. Selection of source helps the clients to get the earliest delivery by allocating the nearest source for the products order.
  4. Notify quantity’ helps to manage the inventory of the catalog product.
  5. If the steps are follow in sequence, then the product is automatically evaluated to deliver the saleable product quantity.
  6. Managing the order becomes easier by following up on the order place until it gets deliver to the respective customer.

Read More: Top 10 Tips For Choosing A WordPress Theme For Your Site


If followed the implementation instructions well then MSI can be easily integrate into Magento 2. The steps are mentioned below:

  1. Step 1- All bout source management

The source shows the actual location of the product where it is situate. So, by following the below steps one can add a new source,

a) Select the Store option, and then go to the Admin panel to go to inventory.

b) On the Inventory tab, click Sources, now the source grid shows the by default enable sources.

c) Now click on ‘Add new source’ and then multi-source code is enable if they have different locations.

d) Now open the General Tab and enter product details like its name, GPS location, code, description, etc.

e) Now in the Contact info tab, open the address of the source and contact information, and then press ‘Save and Continue.

2) Step 2- All about managing Stocks

Stocks are directly relate to the sales channel which maps the whole process. Below are the steps for managing the stocks:

a) Click on Stores, go to Inventory, and then Open Stock

b) Check for the default stock and it is assign to the main website and default source with a single code of the source.

c) Click on Add New Stock to enable multi-source code.

d) Enter the name in the given field, choose the respective sales channels and assign the specific source

3) Step 3 – All about managing a catalog of product inventory

a)click on the catalog and scroll the products.

b)Go to column-Action and press the Edit button to open the edit page of the product.

c)Now go to the source section and assign a product by tapping the Assign button.

d)Then select Sources and hit the Done button.

4) Step 4 – All about salable quantity

Whenever an order is place by the customer then the quantity of salable product will be reduce but the total product count will remain the same. And this product count will reduce only once the product is deliver to the customer’s location.

5) Step 5 – All about managing search selection Algorithm

Here different sources of data are use to set an algorithm of search selection like data about products, customers, their address, delivery location, stocks, and other sources which assist merchants in transporting the orders.


There are multiple advantages of implementation MSI in Magento 2 which is stat as below:

  1. It helps in managing the inventory very easily and also helps to keep track of the product movement.
  2. MSI supports easy integration of the third party to ensure the smooth handling of the inventory.
  3. Streamline all the operations while keeping control of the sources and also prioritizing the better sources accordingly.
  4. The physical management of the product at multiple sources is easily manageable.
  5. Separate shipments can be plann for the customers in advance by the store admins.
  6. Overall, improvise the experience of shopping online for the customers.


From the above points, it is very clear that the Multi-Source Inventory helps to definitely optimize the Inventory management system which is the soul of the e-commerce business. There are many third-party plugins available in the market but here MSI alone provides several features and benefits and also is easily integrable with the existing system. So, just go and decide, when are you planning to implement MSI !!

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button