Mastering Fashion Inventory Management: The Complete Guide for Apparel Brands

Fashion inventory management is the backbone of any successful apparel business. Whether you’re a growing label, a wholesaler, or an established clothing brand, having full visibility and control over your inventory means fewer stockouts, better cash flow, and happier customers. If you’ve ever wondered, “How do I manage my inventory for my fashion brand?”—you’re in the right place.

AIMS360 is the best solution for fashion inventory management, offering advanced tools to help apparel brands and manufacturers manage their inventory across every location and stage of the supply chain. The right inventory management strategy is essential for every step, from procurement to order fulfillment. Whether you’re looking for a better way to do clothing inventory management, or ready to take your apparel inventory management to the next level, AIMS360 is your partner for growth.

Inventory Management with Color and Size Charts

One of the most critical needs in fashion inventory management is the ability to manage inventory by color and size. Unlike most generic ERP or WMS systems, the apparel industry requires a sophisticated matrix approach because every style or SKU may come in multiple colors and a full run of sizes.

AIMS360 was built for this reality. Our platform features a powerful color and size chart matrix that lets you manage, allocate, and track inventory down to the most granular level—by style, color, and size combination.

Why Is a Color and Size Matrix So Important?

• Accurate Inventory: See exactly how many units are available or committed for each size and color, avoiding costly stockouts and over-selling.
• Efficient Picking & Packing: Warehouse teams can pick by matrix, making fulfillment faster and more accurate—especially for mixed or pre-pack orders.
• Smarter Reordering: Analytics show which colors and sizes are selling fastest, so you can replenish only what you need and reduce deadstock.
• Omnichannel Support: Show precise color/size availability across all sales channels, whether you’re selling direct-to-consumer, wholesale, or dropshipping for retailers like Nordstrom or Amazon.

Why Most Generic ERP or WMS Software Fails Here

Generic inventory management tools often track only by SKU or do not natively support fashion’s grid of style, color, and size. This leads to errors, lost sales, or time-consuming manual workarounds.

AIMS360: The #1 Inventory Management Tool for Apparel

AIMS360 is designed for the fashion industry—so managing your inventory with color and size charts is fast, accurate, and seamless. That’s why brands choose AIMS360 as the #1 inventory management solution for apparel and fashion, trusted by startups and major names alike. When it comes to apparel inventory management and clothing inventory management, no other solution offers this level of detail and control.

Understanding Types of Apparel Inventory (With Formulas)

Modern apparel inventory management goes far beyond just knowing how much product you have on the shelf. Here are the key types of inventory every clothing brand should track, including the formulas that power real-time visibility in a system like AIMS360:

1. Stock Inventory

Total quantity of items physically in your possession, including finished goods and raw materials, at your warehouse or storage location.
Formula:
Stock Inventory = Opening Stock + Purchases – Stock Used

2. Allocated Inventory (Reserved Inventory)

Inventory that has already been reserved to fill customer orders or set aside for specific production runs. Not available for new orders.
Formula:
Allocated Inventory = Inventory set aside for confirmed sales orders

3. In Pick Inventory

Items currently being picked or packed in the warehouse for shipment. These units are not available for new sales until shipped or returned to stock.
Formula:
In Pick Inventory = Inventory currently in the picking or packing process

4. In Transfer Inventory

Goods in transit between locations—such as being shipped from the factory to the warehouse, or from warehouse to retail store. Unavailable for sale until received.
Formula:
In Transfer Inventory = Inventory being transferred between locations

5. Available Inventory

Available Inventory is the “free to sell” inventory after subtracting all allocations (inventory reserved for customer orders) and inventory in pick or transfer. This is what you can actually promise to customers right now, taking into account anything already set aside.
Formula:
Available Inventory = Stock Inventory – Allocated Inventory – In Pick Inventory – In Transfer Inventory

6. OTS Inventory (Open to Sell)

OTS stands for “Open to Sell.” In AIMS360, OTS Inventory is the total quantity not committed to any open sales order as of a particular date. It subtracts all open orders (whether allocated or not) from your stock. OTS can be calculated for any future date to help with pre-bookings and future commitments.
Formula:
OTS Inventory = Stock Inventory – All Open Sales Orders (for a specific date range)

7. OTSi Inventory (Open to Sell Immediate)

OTSi stands for “Open to Sell Immediate.” This is the amount of inventory immediately available to sell for new orders, not committed to any open sales order (allocated or not), and not in pick or transfer. This is your most conservative “can ship now” number.
Formula:
OTSi Inventory = Stock Inventory – All Open Sales Orders – In Pick Inventory – In Transfer Inventory

8. WIP Inventory (Work in Progress)

Raw materials, trims, or garments that are in the process of being manufactured or assembled but are not yet finished products.
Formula:
WIP Inventory = Raw Materials + Partially Finished Goods in Production

9. WIP Allocated Inventory

Portion of WIP inventory specifically earmarked for customer orders, future launches, or special projects.
Formula:
WIP Allocated Inventory = Portion of WIP set aside for specific sales orders

Available, OTS, and OTSi: What’s the Difference?

• Available Inventory considers only confirmed allocations and inventory currently being picked or transferred. It’s the “ready to promise” number for new customers, focusing on what’s physically available after all confirmed commitments.
• OTS Inventory is broader—it looks at all open sales orders, regardless of whether inventory has been allocated. OTS is useful for future planning, pre-bookings, and understanding your ability to commit to additional sales.
• OTSi Inventory is your real-time “open to sell immediate” value, subtracting all open sales orders and any inventory in pick or transfer. It is the most conservative and accurate view for what you can ship or allocate immediately.

Where to Manage Apparel Inventory: AIMS360 Fashion WMS Coverage

AIMS360 apparel software makes it possible to track and manage inventory across all the following location types, ensuring comprehensive inventory management:

1. Own Warehouse

Your central warehouse, which can be organized into aisles, levels, sections, and bins for maximum accuracy and efficient picking.

• Functionality: Centralized storage for finished goods and raw materials.
• AIMS360 Fashion WMS Features: Detailed location-based tracking, barcode scanning, and optimized pick/replenishment workflows.

2. Third-Party Logistics (3PL) Warehouse

External warehouses managed by 3PL providers, often used to scale fulfillment or reach new regions.

• Functionality: Outsourced storage and shipping, often integrated with multiple sales channels.
• AIMS360 Fashion WMS Features: Seamless 3PL integrations (no monthly fee—our 3PL integration is included free), real-time inventory updates, and unified inventory visibility across all sales channels.

3. Retail Store

Brick-and-mortar locations, pop-ups, or flagship stores where inventory must be tracked for both front-of-house and back stock.

• Functionality: Direct-to-consumer sales, inventory movement between store and warehouse.
• AIMS360 Fashion WMS Features: In-store inventory management, mobile receiving from warehouse/factory, and real-time inventory counts.

4. Sample Warehouse

Dedicated storage for product samples used for sales meetings, marketing, fit approvals, or even special sample sales.

• Functionality: Storage and control over all sample inventory.
• AIMS360 Fashion WMS Features: Sample tracking, allocation for events, and monitoring of internal or promotional sample movement.

5. Damage Warehouse

Separate area for damaged, defective, or repair-needed inventory, keeping it isolated from regular sellable stock.

• Functionality: Hold and process damaged/returned items for repair or write-off.
• AIMS360 Fashion WMS Features: Segregated tracking of damaged inventory, repair status updates, and detailed reporting for returns or write-offs.

6. Virtual Warehouse

A virtual warehouse is a digital or logical separation of inventory, used to segment stock for specific purposes without a physical move.

• Functionality: Segmentation of inventory for consignment, specific sales channels, customer accounts, or geographic regions—without the need for physical separation. For example, you can manage consignment inventory for a retailer, allocate inventory to Amazon FBA vs. direct fulfillment, or reserve stock for a VIP customer group.
• AIMS360 Fashion WMS Features: Easily create virtual warehouses to manage channel-specific inventory, consignment stock, pre-allocated inventory for events or promotions, and more. This helps with advanced inventory management strategies like virtual allocation for Amazon, Nordstrom, or specialty boutiques, without the operational headache of separate physical warehouses.

Other Common Apparel Inventory Locations

• Transit Inventory: Goods being shipped between locations (already tracked as "in transfer").
• Consignment Locations: Inventory sent to retail partners or showrooms but not yet sold (virtual warehouses make this easy to manage digitally).
• Factory Warehouse: Storage at the manufacturing site, especially for in-house production.

AIMS360 apparel software can be configured to track all of these, giving you unified visibility and control across your supply chain and strengthening your overall inventory management process.

Why AIMS360 is the Best Software for Fashion Inventory Management

AIMS360 was built specifically for the apparel industry—delivering real-time, multi-location inventory management, sophisticated order allocation, and deep reporting for businesses from startup to enterprise. With AIMS360, you get:

• Comprehensive coverage of every inventory type, location, and sales channel
• Real-time stock status and allocation visibility to prevent overselling
• Automated workflows for order fulfillment, stock picking, and replenishment
• Seamless integration with e-commerce, 3PL, EDI, and retail point-of-sale
• Warehouse Management System (WMS) built-in: Advanced warehouse capabilities for barcode scanning, bin/aisle management, picking, transfers, and inventory tracking—all included
• No monthly fee for 3PL integration: Connect with third-party logistics providers at no extra charge. Our 3PL integration is included free, so you can expand fulfillment without hidden costs
• Real-time inventory updates to all sales channels: Ensure your customers always see accurate stock, whether selling on your website, marketplaces, or wholesale portals
• Best for omnichannel sales: Manage inventory for your own store, online marketplaces, and wholesale or retail accounts such as Nordstrom, Macy’s, Saks, or Amazon, with a single source of truth
• Customizable inventory templates: Control how much inventory is shown or allocated to each channel—including your own DTC website, Shopify, Amazon, and even EDI retailers for dropshipping like Nordstrom, Bloomingdale’s, or Zappos. AIMS360’s inventory templates make it easy to customize and automate inventory splits for different sales strategies, protecting your most important accounts
• WIP management and production allocation tools for brands that manufacture

No matter your size or complexity, AIMS360’s apparel software streamlines inventory management so you can stay agile, avoid costly mistakes, and scale profitably. That’s why AIMS360 is the leader in fashion inventory management, apparel inventory management, and clothing inventory management for the entire industry.

Ready to take control of your apparel inventory? Contact AIMS360 to streamline your clothing inventory management and help you grow your brand

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FAQ

Q: What is fashion inventory management?
A: Fashion inventory management is the process of tracking, allocating, and controlling all raw materials, work in progress, and finished goods across your entire apparel supply chain. This can be done using a specialized fashion software like AIMS360 that is built specifically for the apparel industry, making it easy to manage inventory by style, color, size, and location for maximum efficiency and profitability.

Q: Can AIMS360 manage fashion inventory at multiple locations?
A: Yes. You can manage inventory in your own warehouse, 3PL facilities, retail stores, sample warehouses, damage areas, and more—with unified, real-time visibility.

Q: Can AIMS360 manage both fashion and apparel finished inventory as well as material and trim inventory?
A: Yes! AIMS360 is designed for the fashion and apparel industry. It gives you powerful tools to track and manage finished inventory (ready-to-sell products) as well as raw materials, trims, components, and work-in-progress—helping you manage your entire supply chain, from raw material purchasing to finished goods distribution.

Q: What is available inventory, and why is it important?
A: Available inventory is what you actually have left to sell, after subtracting all reserved, picked, and in-transfer stock from your total inventory. It helps prevent overselling and customer disappointment.

Q: What is the difference between Available, OTS, and OTSi inventory?
A: Available inventory considers only confirmed allocations; OTS inventory considers all open sales orders regardless of allocation; OTSi is your most conservative, real-time open-to-sell number, subtracting all open orders, in pick, and in transfer.

Q: How does AIMS360 help prevent overselling?
A: By reserving inventory the moment an order is placed or allocated, and by tracking all movements and commitments, AIMS360 ensures you only sell what you can actually deliver.

Q: What types of inventory does AIMS360 track?
A: Stock inventory, allocated inventory, in pick, in transfer, available inventory, OTS, OTSi, WIP, WIP allocated, and more.

Q: Can I customize inventory availability for each sales channel in AIMS360, including EDI dropshipping?
A: Yes! With AIMS360’s inventory templates, you can easily control and automate the amount of inventory shown to each channel—including direct-to-consumer (DTC), wholesale, marketplaces, and EDI dropshipping partners like Nordstrom, Bloomingdale’s, Zappos, Macy’s, Saks, and Amazon. This means you can protect inventory for priority accounts, ensure you meet each retailer’s requirements, and optimize your inventory management strategy for every sales channel.

Q: Does AIMS360 integrate with Shopify?
A: Yes! AIMS360 offers seamless integration with Shopify, allowing you to keep inventory, orders, and fulfillment perfectly synced between your ERP and your Shopify store.

Q: If my 3PL isn’t on the list, can you integrate it?
A: Yes, absolutely. If your 3PL provider is not already integrated, our team can work with you to connect AIMS360 with almost any 3PL warehouse. See more details and the full list of current partners on our 3PL integrations page.

Q: Is there an extra fee for 3PL integrations?
A: No, there’s no monthly fee. AIMS360 includes 3PL integration at no extra cost, so you can connect with third-party logistics partners and expand your fulfillment operations without worrying about hidden charges.

Q: Does AIMS360 have warehouse management features built in?
A: Yes! AIMS360 includes a robust Warehouse Management System (WMS) with features like barcode scanning, bin-level tracking, pick/pack management, and real-time inventory movement—all within the same platform.

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