Adobe Commerce Multi-Source Inventory (MSI): Managing Complex Inventory Scenarios

Most eCommerce businesses in the current decade have a lot on their plate. Proper inventory management involves juggling inventory across multiple locations, warehouses, and fulfillment partners.  

Consequently, 72% of retailers intend to transform their supply chain operations with the latest technological advancements. This is where leveraging the potential of the Adobe Commerce (formerly Magento) solution with a reliable Adobe solution partner can make a significant difference with a powerful solution: Multi-Source Inventory (MSI).

This blog explores MSI’s capabilities and how it empowers you to manage even the most complex inventory situations. Let’s get started and unlock the secrets to streamlined inventory management!

Let’s Start With Making Sense Of Your Inventory Landscape

Before diving into MSI, it’s crucial to identify your specific inventory setup. This means finding answers to essential questions like: Are you a single-source retailer with a central warehouse? Or do you operate with a distributed network of warehouses, drop shippers, and brick-and-mortar stores? 

But what is a single-source inventory? A single-source inventory refers to a situation where everything is under one roof. Here, you can leverage the MSI’s unmatched flexibility to configure stock levels and sales channels. 

On the other hand, there’s the multi-source inventory, and this is an area where the MSI truly shines. It empowers you to define sources by designating physical locations like warehouses, stores, and drop shippers as individual sources within your system.

You can even use this to create stocks by mapping sources to specific sales channels, such as websites. This essentially creates virtual inventories via Adobe Experience Manager for each channel, reflecting the combined availability from assigned sources.

Multi-Source Inventory (MSI) in Action: Exploring The Benefits and Features

The Multi-Source Inventory (MSI) system from Adobe Commerce can make a significant difference in your eCommerce business’s inventory management goals. You must partner with a trusted Adobe Commerce Partner to maximize Multi-Source Inventory (MSI) features and access the right benefits. 

That said, let’s explore the magic MSI brings to your inventory management:

  • Accurate Stock Visibility: It is time that you bid farewell to inaccurate stock levels that can cost your business significantly. Multi-Source Inventory (MSI) provides a real-time snapshot of available inventory across all sources. This eliminates the risk of overselling or disappointing customers with out-of-stock notifications and better meet customer needs and expectations.
  • Enhanced Order Fulfillment: The Multi-Source Inventory (MSI) enables you to streamline order fulfillment with source-based shipping easily. You can easily assign specific sources to fulfill orders based on factors like proximity to the customer’s location or product availability. This will enhance your overall order fulfillment rates and enhance your business’s reputation and credibility. 
  • Reduced Overstocking and Understocking: Multi-Source Inventory (MSI) allows for granular control of stock levels at each source. You can optimize inventory allocation based on product demand and forecast future needs. This reduces the risk of overstocking slow-moving items and ensures you have enough popular products in stock. Addressing these overstocking and understocking issues can help reduce 10% of inventory costs. 
  • Improved Customer Experience: It is no surprise that accurate inventory will automatically translate to improved customer experiences. This will ensure customers trust the displayed stock levels and enjoy faster deliveries thanks to optimized fulfillment strategies. 
  • Centralized Inventory Management: The best thing about using the Multi-Source Inventory (MSI) is that it allows you to manage your entire inventory from a single platform. This eliminates the struggle of juggling spreadsheets or logging into different systems to track stock across locations. More importantly, this enhances transparency with real-time visibility that fosters informed decision-making. 

Advanced Multi-Source Inventory (MSI) Features 

Multi-Source Inventory (MSI) takes inventory management a step further with advanced features that help eCommerce businesses in many ways. Two of the best-known of these features include:  

Shipment Matching Algorithms: 

Multi-Source Inventory (MSI) enables you to optimize order fulfillment by automatically matching orders to the most suitable source based on pre-defined rules. The solution will consider multiple influencing factors such as distance, shipping costs, and inventory availability.

Concurrent Checkout Protection: 

Multi-Source Inventory (MSI) allows its users to leverage real-time order validation and prevent overselling. The solution reserves the quantity across all relevant sources as soon as a customer adds an item to their cart, ensuring that customers can only make purchases from the available stock. 

Getting Started And Unlocking the Power of Multi-Source Inventory (MSI)

Getting started with Multi-Source Inventory (MSI) is a relatively easy process as long as you have the right considerations in mind. First, you must ensure that your Adobe Commerce version supports the Multi-Source Inventory (MSI). Usually, using the Adobe Commerce version 2.3 and above is enough. 

Next, you must leverage Adobe Experience League’s resources to configure the Multi-Source Inventory (MSI) and understand its functionalities. Consult an experienced software development expert to customize Multi-Source Inventory (MSI) workflows and integrate them seamlessly with your existing systems. 

Final Thoughts: Adobe Commerce Multi-Source Inventory (MSI) Driving Growth

In today’s competitive eCommerce landscape, efficient inventory management is a must-have. Adobe Commerce Multi-Source Inventory (MSI) equips you with the right tools you need to conquer complex inventory scenarios, improve customer experience, and boost your bottom line. 

Make sure you always stay updated with the latest Multi-Source Inventory (MSI) features and functionalities. Adobe takes pride in continuously improving Multi-Source Inventory (MSI) capabilities, so keep yourself informed to take full advantage of its potential.

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