Multi-Source Inventory: The Largest Community-Developed Feature in Magento. Brand new inventory management approach which is about to substitute existing CatalogInventory mechanism in Magento2.

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Multi-Source Inventory
(MSI)
Igor Miniailo
Magento 2 Architect
Community Engineering

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Does MSI stands for Multi-Source Inventory?
NO

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MSI is a brand new Inventory management
mechanism which supports Multi Sourcing

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MSI is designed to enable stock management in multiple
locations so that merchants can properly reflect their physical
warehouses in Magento system without external extensions or
customization
Multi-Source Inventory (MSI)

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Split the inventory
between the
sources within one
Magento installation

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Replace current CatalogInventory with MSI

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How big is MSI?

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How Big is Magento?

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How big is MSI? – It’s huge

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https://github.com/magento-engcom/msi/wiki/MSI-Roadmap

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MVP MSI Business Values for Merchants
• Management of all physical locations (Sources) and
products stored there (SourceItems)
– As a merchant, I want Magento to provide an ability to manage all
physical Sources where the products are stored. To get an
understanding of the Stock level on each of them.
• Improve Checkout Performance (even for Single Stock
merchants)
– As a merchant, I want to eliminate excessive database locks and
Inventory consistency validation during checkout process which lead to
performance degradation when there is a high checkout concurrency
rate. So that, Reservation mechanism introduced which supports
Asynchronous Inventory Deduction.

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MVP MSI Business Values for Merchants
• Import/Export Stock data
– As a merchant, I want new Import/Export process for Inventory to be
introduced to speed up integration with an external ERP system.
• Drop Shipping support
– As a merchant, I want to have an ability to setup external Source to be
used for Drop shipping.
• Stock Control / Low Stock Reports
– As a merchant, I want Magento to support Stock Control on all the
physical locations (Sources) and notify me when products on some
location are running out.
• No additional complication for Single Stock Merchants
– As a Merchant who is satisfied with Magento Single Stock, I want no
added complexity for UI and Stock management. The user experience
for Single Stock usage should be preserved.

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Base Concept

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Inventory Management

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Inventory Management

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Inventory Management

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Inventory management on Product Page

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• Unload the process of placing an order as
much as possible
• Remove unnecessary locks (get rid of race
condition between concurrent transactions)
• Improve scalability of Magento introducing
multi-dimensional indices (each stock has own
Index / Database table)
Checkout Action Points/Goals

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Reservation - the entity is used when the order is
placed and we need to reserve some product quantity in
stock.
Reservations are append only operations and help us to
prevent blocking operations and race conditions at the
time of checkout.
Reservation mechanism
https://github.com/magento-engcom/msi/wiki/Reservations

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Order Placement – Step 1
France Warehouse
SKU-1: 5qty
EU Stock
SKU-1: 15qty
Italy Warehouse
SKU-1: 10qty
Raw data Index Reservations
No records
Salable Qty: 15qty (data from index, empty reservations)

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Order Placement – Step 2
Action: Customer buys 5 products on frontend

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Order Placement – Step 3
France Warehouse
SKU-1: 5qty
EU Stock
SKU-1: 15qty
Italy Warehouse
SKU-1: 10qty
Raw data Index Reservations
SKU-1: -5
Salable Qty: 10qty (data from index 15, apply all reservations -5)
Data is NOT changed Reservation has been
added

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Order Placement – Step 4
Action: Admin makes a re-order 3 products out of 5 returned,
and new order consists of 2 products

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Order Placement – Step 5
France Warehouse
SKU-1: 5qty
EU Stock
SKU-1: 15qty
Italy Warehouse
SKU-1: 10qty
Raw data Index Reservations
SKU-1: -5
SKU-1: +3
Salable Qty: 13qty (data from index 15, apply reservations -5+3)
Data is NOT changed
Reservation has been added

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Order Placement – Step 6
Action: Admin completes order. Re-index was run.

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Order Placement – Step 7
France Warehouse
SKU-1: 3qty
EU Stock
SKU-1: 13qty
Italy Warehouse
SKU-1: 10qty
Raw data Index Reservations
SKU-1: -5
SKU-1: +3
SKU-1: +2
Salable Qty: 13qty (data from index 13, apply reservations -5+3+2=0)
Data is CHANGED Compensation Reservation
has been added

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Order Placement – Step 8
Action: Reservation cleaning
Looping through these reservations we could find reservations
which in sum gives 0 (Zero) and remove them.

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Order Placement – Step 9 (like Step 1)
France Warehouse
SKU-1: 3qty
EU Stock
SKU-1: 13qty
Italy Warehouse
SKU-1: 10qty
Raw data Index Reservations
Salable Qty: 13qty (data from index, empty reservations)
Data is NOT changed Reservations have been removed
No records

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Order Processing

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Source Selection Based on Priority of Sources

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Source Selection Algorithm

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Shipment created per Source

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Kanban board and Wiki are on the GitHub
.

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Slack Channel to Exchange ideas (#MSI)

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YouTube playlist

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Some stats
• 66 developers have ever created PRs to
MSI
• 400 PRs created since the beginning (mid
of June 2017)

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• Documentation
https://github.com/magento-engcom/msi/wiki
• Roadmap
https://github.com/magento-engcom/msi/wiki/MSI-Roadmap
• Dashboard
https://app.zenhub.com/workspace/o/magento-engcom/msi/boards
• Weekly Demos
https://www.youtube.com/watch?v=ZtBNIE8FbjI&list=PLrQ5FBCRsEb
WKK6U_3Awe7X-nG7KY0WPW
Related Links

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How to join us? Send an email to
engcom@magento.com
@iminyaylo
Thank y’all!