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Managing Multi-Source Inventory Using Magento 2.3

February 13, 2019 |

Managing inventory for multiple warehouses can now be done like a breeze through Multi-Source Inventory (MSI). Explore how other Magento development services support the digital business.

Magento supports inventory management for every business size, from a single store with a single website to an international network of websites, stores, warehouses, and drop shippers.

All merchants using Magento fall into two types of inventory management based on the number of locations or sources in your business.

Single-Source merchants manage on-hand inventory and complete orders in a single location. The merchants have multiple websites and sell products from the same catalog, inventory, and location.

Multi-Source merchants manage on-hand inventory and complete orders through multiple locations. This is known as Multi-Sourcing. The merchants have one website or a multisite implementation.

Magento 2 - Multi-Source Inventory

A representative image of Multi-Source Inventory

Gone are the days when we had to rely on a single inventory system, which not just kept multi-sourcing at bay, but was also a burden of excessive workload for merchants. Managing inventory for multiple warehouses can now be done like a breeze through Multi-Source Inventory (MSI).

Multi-Source Inventory got recently introduced in Magento 2.3, where it manages the inventory for multiple warehouses. Using MSI, we can manage a particular product quantity from different sources or locations.

Managing Multi-Source Inventory

  • Manage Sources
  • Manage Stocks
  • Manage Product Inventory
  • Order Management

Manage Sources

Merchants who sell their products on different inventories in different locations can create the source inventory for every location like US-California, US-Alabama, US-Washington etc.

Magento 2 - Multi-Source Inventory

While creating sources, the data should be entered under General, Contact Information, and Address with all the required fields like name, code, and country, etc.

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Manage Stocks

Merchants can create multiple channels (i.e., Magento websites ) and assign sources for a channel where the merchants will be selling their products.

Magento 2 - Multi-Source Inventory

We have three sections to create and manage the stocks,

General – Name of the stock for your reference like the US stocks, UK stocks, etc.

Sales Channel – Select listed channels.

Sources – Assign sources for each channel.

Magento 2 - Multi-Source Inventory

Manage Product Inventory

Merchants can assign sources to the products when they create or edit a new product. You can add different product stocks for different locales.

The available product quantity gets reduced when an order gets placed for an assigned source. If product source quantity is out of stock, then the customer will not be able to place an order in such a locale.

Magento 2 - Multi-Source Inventory

Order Management

The source selection algorithm is used when an order gets placed for the products. The quantity of the product is reduced after the shipment is made in an assigned locale. The admin also has the option to change the locale manually while shipping the products.

Magento 2 - Multi-Source Inventory

Multi-Source Inventory (MSI) in Magento 2.3 has changed the scene in the inventory system with its multi-sourcing function, by giving the merchant the liberty to manage multiple sources and handle stock for every warehouse, making it a better choice when compared to the single inventory system.

The latest version of Magento is here. Get your Magento upgrade service done and explore its positive impacts on your business.


Ajithkumar is specialized in Magento 2 with 1.5 years of experience. He loves to code and debug. His hobbies include reading novels, playing basketball and traveling.

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