Table of Contents

• Why Inventory Management Matters in Fashion
• Types of Inventory in the Fashion Industry
  • Raw Materials Inventory
  • Work-in-Progress (WIP) Inventory
  • Finished Goods Inventory
  • Maintenance, Repair, and Operations (MRO) Inventory
  • Damaged or Unsellable Inventory
  • Lots and Rolls
• Inventory Management & Inventory Valuation for Accounting
• Main Materials Used in Fashion—and Why Tracking Matters
• How Inventory Management Software Powers Fashion Brands
• Inventory Management at Style, Color, and Size Level with AIMS360
• Managing Showroom, Sample, and Consignment Inventory in AIMS360
• Integrating with 3PL for Seamless Inventory Accuracy
• Omnichannel Inventory Management for Modern Fashion Brands
• The Transformational Benefits of a Fully Optimized Apparel Management System
• Customer Testimonial
• Frequently Asked Questions (FAQ)
• Conclusion: The Future of Fashion Inventory is Unified and Intelligent

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Why Inventory Management Matters in Fashion

In the fast-paced world of fashion, where trends change overnight and customers expect instant availability, effective inventory management isn’t just important—it’s essential. Whether you’re a direct-to-consumer brand, wholesaler, or operate across multiple channels, managing your inventory smartly directly impacts your bottom line, customer satisfaction, and ability to scale.

AIMS360, built exclusively for fashion and apparel businesses, delivers the tools and insights you need to stay ahead. Let’s explore how modern inventory management transforms your business from raw materials to finished goods, including omnichannel and 3PL integrations that keep you competitive in today’s retail landscape.

Types of Inventory in the Fashion Industry

Successful inventory management starts with understanding the unique categories and complexities of fashion inventory:

1. Raw Materials Inventory

This includes all fabrics, trims, buttons, zippers, and labels—anything used in manufacturing garments. Keeping tight control over raw materials inventory helps avoid production delays and excess storage costs, especially when working with various dye lots or fabric rolls.

2. Work-in-Progress (WIP) Inventory

WIP includes items that are mid-production but not yet finished—like cut fabrics awaiting assembly or partially sewn garments. Tracking WIP helps brands spot bottlenecks and improve manufacturing efficiency.

3. Finished Goods Inventory

Finished goods inventory refers to garments and products that have completed the manufacturing process and are ready for sale through wholesale, retail, or direct-to-consumer channels. Effective management and storage of finished goods are crucial for maintaining product quality, maximizing warehouse efficiency, and ensuring rapid order fulfillment.

Common Storage Methods for Finished Goods Inventory

Fashion brands and apparel warehouses store finished goods in several ways, depending on product type, volume, and handling needs. The most common methods include:

• Goods on Hanger (GOH):
  Garments are stored on hangers and suspended from rails or racking systems. This method is ideal for items that wrinkle easily or must be shipped ready-to-display, such as dresses, suits, and coats.
• Flat Shelving or Bins:
  Folded garments are placed in bins, on flat shelves, or in cubby-like compartments. This works well for t-shirts, jeans, knitwear, and bulkier items.
• Carton or Box Storage:
  Finished goods are packed in cartons or boxes, stacked on shelves or pallets. This is efficient for high-volume or bulk SKUs, as well as items that will be shipped in case quantities.
• Pallet Racking:
  Palletized finished goods are stored on industrial racks. This method maximizes vertical space and is ideal for high-volume warehouses or distribution centers handling large shipments.
• Automated Storage and Retrieval Systems (ASRS):
  Some advanced warehouses use automated systems, like conveyor-driven storage or robotics, to store and retrieve finished goods efficiently. This increases speed, accuracy, and reduces labor.
• Mezzanine Storage:
  Creating additional floors within a warehouse for storing seasonal or overflow finished goods.
• High-Density Mobile Shelving:
  Shelving units that move on tracks to maximize storage space, often used for folded garments or accessories.
• Caged or Secure Storage:
  High-value or limited-edition finished goods may be kept in locked cages or secure rooms within the warehouse.

Choosing the Right Storage Method

The right storage method depends on product type, order volume, handling requirements, and space utilization. AIMS360’s warehouse management software (WMS) supports all these inventory storage approaches, allowing brands to:

• Track inventory location down to specific racks, bins, or hanger rails
• Optimize picking routes for order fulfillment
• Maintain garment quality (especially for GOH items)
• Streamline stock counts, transfers, and replenishments

With the right finished goods inventory software and strategy, fashion brands can maximize efficiency, protect product quality, and deliver a better customer experience.

4. Maintenance, Repair, and Operations (MRO) Inventory

Maintenance, Repair, and Operations (MRO) inventory includes all the supplies, spare parts, and materials a company uses to keep its production processes, equipment, and facilities running smoothly—but which are not part of the finished product.

What’s Included in MRO Inventory?

• Maintenance supplies: Items used for the upkeep and cleaning of machinery, warehouses, or retail spaces (e.g., lubricants, cleaning chemicals, mops, replacement bulbs).
• Repair parts: Spare components or tools used to fix machines and equipment (e.g., machine belts, motors, gears, screws, sewing machine needles).
• Operations supplies: Everyday consumables and equipment used in business operations (e.g., gloves, safety gear, batteries, packaging materials, tape, office supplies).

Why Is MRO Inventory Important in Fashion?

In the fashion industry, efficient management of MRO inventory helps ensure:

• Production uptime: Quickly fixing broken sewing machines or replenishing cleaning supplies avoids costly delays and downtime on the manufacturing floor or in the warehouse.
• Workplace safety: Having safety equipment and operational supplies on hand keeps employees safe and compliant with regulations.
• Smooth warehouse operations: Consumables like barcode labels, shrink wrap, and packing tape are vital for accurate order fulfillment and shipping.

How AIMS360 Helps

AIMS360 WMS tracks and manages MRO inventory alongside raw materials and finished goods. This ensures your maintenance and operational supplies are always stocked—so production lines keep moving and warehouses run efficiently, without last-minute supply shortages.

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5. Damaged or Unsellable Inventory

No business is immune to damaged, defective, or obsolete stock. Accurate tracking of these items in AIMS360 is essential for write-offs, returns, and loss prevention. But what happens next depends on your brand’s business model, target market, and long-term strategy.

What Can You Do with Damaged or Unsellable Stock?

1. Liquidation or Off-Price Sale:
Many fashion brands choose to liquidate unsellable or slow-moving stock through:

• Off-price retailers like Ross, TJ Maxx, Marshalls, or Burlington (most suitable for mid-tier or mass-market brands).
• Online liquidation marketplaces such as B-Stock, Liquidation.com, or BULQ.
• Flash sale sites like Gilt or Rue La La for slightly damaged but still desirable items.

2. Sample Sales:
Organize private or staff-only sample sales to clear defective items, returns, or excess samples. For sample sales, AIMS360 partners with Shopify POS—allowing you to quickly sell sample or overstock products at special events or pop-ups. Every sale updates inventory and sales data in real time within AIMS360 apparel software, ensuring perfect accuracy across all systems.

3. Donations:
Consider donating unsellable but usable items to:

• Local or national charities (e.g., Dress for Success, Goodwill, Salvation Army)
• Disaster relief organizations
• Homeless shelters or refugee organizations
  This can yield tax benefits, support CSR initiatives, and reduce landfill waste.

4. Recycling or Upcycling:

• Partner with textile recyclers to turn unusable garments into rags, insulation, or new textiles.
• Upcycle unsellable stock into new products (e.g., accessories, patchwork items, or limited-edition designs).

5. Destroying Inventory:
For luxury and premium brands, destroying (shredding, incinerating) unsellable goods is sometimes the chosen route to protect brand image and prevent items from appearing in unauthorized channels or diluting perceived value. However, this is controversial and brands are increasingly seeking sustainable alternatives.

Strategic Considerations

• Brand Positioning: Luxury and high-end labels rarely sell or donate to off-price channels to protect exclusivity and pricing integrity.
• Sustainability Goals: More brands now prioritize recycling, upcycling, and donations to reduce environmental impact and demonstrate social responsibility.
• Legal & Tax: Donations can qualify for tax deductions, and destruction of inventory may require documentation for accounting and compliance.

How AIMS360 Fashion Software Helps

AIMS360 tracks damaged or unsellable inventory in real time, provides clear audit trails for all write-offs, and helps brands segment inventory for liquidation, donation, or recycling. For sample sales, AIMS360 partners with Shopify POS—ensuring every sample sale or overstock event is captured instantly and accurately in your inventory and sales reports. This streamlines your process and supports strategic, compliant, and brand-appropriate decisions about unsellable stock.

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6. Lots and Rolls

Fashion inventory often includes fabric rolls and lots, each with unique dye lots, lengths, and characteristics. Precise tracking of lots and rolls is critical for maintaining quality standards, regulatory compliance, and operational efficiency.

What Are Lots and Rolls?

• Lots:
  A “lot” refers to a batch of material—typically fabric—produced under the same conditions, often during a single manufacturing run or dyeing process. Each lot has its own unique number or code.
  • Example: A lot of navy twill fabric dyed on the same day, with a specific shade and finish.
• Rolls:
  Fabric is stored and transported on rolls or bolts, each with a specific length, width, and sometimes even minor color variations (especially in natural fibers or hand-dyed goods).
  • Example: A 100-yard roll of jersey knit from Lot #4587.

Why Detailed Tracking Is Essential

• Color Consistency:
  Dye lots can vary slightly from batch to batch. Without proper tracking, mixing lots in the same production run may result in shade differences across finished garments—a major quality issue for fashion brands.
• Compliance and Traceability:
  For many brands—especially those working with children’s apparel, technical fabrics, or in regulated markets—being able to trace finished products back to the exact lot and roll is required for compliance, certifications, or recall management.
• Inventory Optimization:
  Knowing the exact quantity, length, and location of each roll helps optimize cutting, reduce waste, and ensure you always have enough fabric for planned production runs.
• Recall or Defect Management:
  If a batch of fabric is found to be defective (e.g., flawed weave or incorrect dye), lot tracking allows you to isolate and recall only the affected items, avoiding costly full-scale recalls and protecting your brand’s reputation.

How AIMS360 Helps

AIMS360’s apparel warehouse management software (WMS) is built for fashion’s unique needs, including:

• Lot and Roll Numbers:
  Assign and track unique numbers for each lot and every individual roll, from receipt through cutting to finished goods.
• Attribute Tracking:
  Track dye lot, width, length, supplier, and fabric type—right down to partial roll usage and remaining yardage.
• Cut Ticket Management:
  Allocate specific lots and rolls to production orders or cut tickets, so you always know which materials were used for each garment batch.
• Real-Time Inventory Updates:
  As rolls are partially used, AIMS360 automatically updates available yardage, ensuring planners and cutters always have accurate information.
• Audit Trail and Compliance:
  Every movement or usage is logged, providing a complete audit trail for quality control, regulatory requirements, and efficient recall processes.

Real-World Example

A contemporary women’s fashion brand receives 10 rolls of silk from three different dye lots. Using AIMS360, they can assign garments from each lot to specific production runs, track which retailers receive garments made from which lot, and, if any issues arise, quickly notify the affected stores with complete traceability.

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Materials Used in Fashion—and Why Tracking Matters

Fashion brands rely on a variety of key materials to create garments, each serving a unique function in the finished product. The most common main materials include:

1. Fabric

The primary material forming the main body of a garment. Fabrics vary in type, texture, weight, and fiber composition.
Examples: Cotton, wool, silk, linen, polyester, nylon, blends, bamboo, TENCEL™, recycled fibers.

2. Trim

Decorative or functional additions applied to garments to enhance style or function.
Examples: Ribbons, lace, appliqués, piping, beading, embroidery.

3. Interlining and Interfacing

Materials placed between the outer fabric and the lining to provide structure, support, and sometimes insulation, particularly in collars, cuffs, and waistbands.
Examples: Canvas, fusible interlining, non-woven interlining, cotton, polyester.

4. Closures and Fasteners

Functional components used to open, close, or adjust garments.
Examples: Buttons, zippers, snaps, hooks and eyes, Velcro, buckles, toggles.

5. Findings, Notions, and Hardware

Additional elements that enhance garment construction, function, or aesthetics.
Examples: Zipper pulls, clasps, eyelets, rivets, buckles, sliders, elastic, thread, labels, lining.

6. Specialty & Innovative Materials

Used for specific applications or to achieve unique effects, including eco-conscious or technical purposes.
Examples: Leather, faux fur, cactus leather, recycled or upcycled materials.

Why Material Tracking Matters:
Tracking all these materials by type, color, width, lot, and supplier in AIMS360 ensures traceability, compliance, and optimal usage—helping fashion brands prevent shortages, reduce excess, and streamline production for both quality and sustainability.

How Inventory Management Software Powers Fashion Brands

Generic inventory tools can’t keep up with the unique challenges of fashion. AIMS360’s warehouse management software (WMS) and inventory management suite are built for the complexities of apparel:

Real-Time Inventory Sync—No Delays, No Guesswork

AIMS360 ensures that every inventory sync is processed in real time. Whenever stock is received, sold, transferred, or adjusted—whether in your own warehouse, retail stores, or at a 3PL partner—those updates are instantly reflected across every sales channel and location. There’s no batching, no overnight waits, and no lag between systems. This true real-time inventory synchronization means you can always trust the numbers on your dashboard, enabling smarter, faster business decisions and a better customer experience.

Create and Manage Purchase Orders

Automatically generate purchase orders based on real-time inventory levels and forecasted demand. Centralized supplier communication and digital PO management streamline procurement, prevent stockouts, and reduce manual errors.

Barcode Scanning and Mobile Inventory

Speed up receiving, picking, and transfers with integrated barcode scanning—directly from mobile devices or handheld scanners. Instantly record new stock or adjustments and eliminate manual data entry.

Real-Time Inventory Counting and Stock Adjustments

Conduct cycle counts, spot checks, or full physical inventories easily. Any discrepancy is flagged and reconciled in real time, so inventory data stays accurate across all warehouses and stores.

Robust Analytics and Reporting

AIMS360’s fashion-specific analytics provide deep insights:

• Sell-through by style, color, and size
• Aged inventory and deadstock alerts
• Inventory valuation in real time
• ABC analysis and stockout prevention

Lot, Roll, and Attribute Tracking

Track every roll or lot by length, dye lot, supplier, and intended cut ticket. Ensure accurate material usage and full traceability from supplier to finished product—vital for compliance and quality assurance.

Inventory Management at Style, Color, and Size Level with AIMS360 apparel software

One of the biggest challenges in fashion and apparel inventory is the need to track products not just by SKU or model, but down to the specific style, color, and size. AIMS360 is engineered to solve this with native, built-in capabilities for multi-dimensional inventory management.

Here’s how AIMS360 empowers your brand at the granular level:

• Style-Level Management: Track and report on every individual style you carry, from bestsellers to niche items. Group products by season, collection, or line for detailed analysis.
• Color-Level Tracking: Never lose sight of color variations—AIMS360 lets you allocate inventory, forecast demand, and fulfill orders based on colorways for each style.
• Size-Level Control: The system manages inventory for every size, allowing you to replenish the exact sizes that sell fastest, avoid overstock of slow movers, and reduce markdowns.
• Combinatorial Matrix: AIMS360’s inventory matrix displays every combination of style, color, and size for fast, accurate order entry, stock counts, and fulfillment—no more manual cross-referencing or spreadsheet headaches.
• Lot and Roll Association: For brands working with raw materials, you can track fabric lots and rolls all the way through production, linking finished goods back to the original material batch.

The result: You always know exactly what’s available, where, and in which variant. This level of precision means fewer errors, better fulfillment rates, and more accurate reporting, letting you make smarter buying and allocation decisions—crucial in a market driven by rapid style, color, and size changes.

Managing Showroom, Sample, and Consignment Inventory in AIMS360 fashion software

Fashion brands face unique inventory challenges beyond standard wholesale and retail operations—especially when it comes to managing samples, showroom pieces, or goods on consignment. AIMS360’s warehouse management software (WMS) is built to simplify these complex workflows and provide the granular tracking today’s apparel businesses need.

Showroom Inventory Management

Whether you’re hosting buyers at permanent showrooms, attending trade shows, or displaying collections for retail partners, AIMS360 gives you complete control over your showroom inventory:

• Dedicated Locations: Assign dedicated showroom locations within your WMS for easy separation and tracking of samples, display pieces, and sales-ready product.
• Availability at a Glance: Instantly see what’s in your showroom, what’s reserved for appointments, and what’s available for immediate sale or transfer.
• Movement Tracking: Track every transfer in and out of the showroom—no more guessing what’s missing or unaccounted for at season’s end.

Sample Inventory Control

Samples drive the fashion sales process, but they’re notoriously hard to manage. AIMS360 helps you:

• Track Samples by Style/Color/Size: Every sample—no matter how unique—is fully tracked with all key attributes, including notes or tags for special characteristics.
• Assign to Reps or Accounts: Allocate and monitor sample sets by sales rep, showroom, or customer for accountability and streamlined returns.
• Sample Aging and Write-Offs: Identify aged or retired samples for return, markdown, donation, or write-off, reducing losses and clutter.
• Sample Sales Tracking: When it’s time to clear out old or excess samples, AIMS360 allows you to sell samples directly from your sample inventory. You can track sample sales separately from regular inventory, ensuring proper valuation, unique pricing, and accurate reporting—while still maintaining full auditability and compliance.

Consignment Inventory

Many fashion brands use consignment to place inventory with retail partners or at pop-up locations. AIMS360 streamlines consignment with:

• Consignment Location Types: Easily designate specific consignment accounts and locations in your WMS.
• Ownership Tracking: Clearly differentiate inventory that is owned but not sold, even after it leaves your main warehouse.
• Automated Reconciliation: Track movement, sales, and returns from consignment locations to ensure accurate billing and inventory records—minimizing disputes and optimizing cash flow.
• Real-Time Insights: Monitor what’s placed, what’s sold, and what’s returned, giving you instant visibility into the performance of your consignment program.

With AIMS360, you gain full control over showroom, sample, and consignment inventory—eliminating manual spreadsheets, boosting accountability, and maximizing every sales opportunity. Whether your inventory is in your warehouse, a sales showroom, or a partner’s retail location, it’s all managed in one, real-time system.

Integrating with 3PL for Seamless Inventory Accuracy

Outsourcing logistics to 3PL providers gives brands flexibility and reach, but only if inventory data stays perfectly synchronized. Here’s how AIMS360 ERP integrates with your 3PL’s warehouse management system for full control:

• Centralized Data: Orders, shipments, returns, and inventory levels across all 3PL locations are unified in a single platform.
• Real-Time Visibility: Instantly see what’s in stock, what’s committed, and what’s incoming at your 3PL’s warehouse.
• Automatic Synchronization: Direct integration keeps data updated in both AIMS360 and your 3PL—minimizing manual errors and avoiding overselling.
• Reconciliation and Validation: Scheduled audits and built-in checks compare system data with physical counts, flagging discrepancies for prompt resolution.
• Fashion-Specific Attributes: Track inventory at the granular level of style, color, size, season, and even lot or roll, so nothing falls through the cracks.
• Streamlined Orders and Returns: Orders transmit seamlessly from AIMS360 to your 3PL, and returns are tracked for fast restocking or credits—critical in fashion’s high-return environment.
• Forecasting and Planning: Use real data to predict demand, optimize stock levels, and prevent both over- and under-stocking across all fulfillment centers.

Omnichannel Inventory Management for Modern Fashion Brands

In today’s fast-moving fashion landscape, customers expect to shop seamlessly across brick-and-mortar stores, branded e-commerce sites, online marketplaces like Amazon, social commerce channels such as Instagram Shopping or TikTok Shop, and even through mobile apps or live shopping streams. With trends evolving rapidly and demand fluctuating by style, color, size, and season, effective omnichannel inventory management is now a necessity for fashion brands to compete and win.

What Is Omnichannel Inventory Management?

Omnichannel inventory management is the process of integrating and synchronizing inventory across all sales channels and fulfillment points, providing a single real-time source of truth. Rather than managing separate pools of stock for each channel, the best systems maintain a virtual inventory that is dynamically updated as customers buy, return, or exchange products anywhere in the network.

Latest Trends in Omnichannel Inventory Management

1. Unified Commerce Platforms:
Modern fashion brands are adopting unified commerce platforms like AIMS360 to centralize inventory, orders, and customer data, breaking down silos and enabling smarter business decisions.

2. Real-Time Inventory Visibility:
Today’s shoppers expect accurate inventory status online and offline. Real-time sync ensures that when a product is shown as “in stock,” it’s truly available to purchase, reserve, or pick up—building trust and reducing missed sales.

3. Flexible Fulfillment Strategies:
Brands are implementing BOPIS (Buy Online, Pick Up In Store), BORIS (Buy Online, Return In Store), ship-from-store, and even same-day or local delivery. These approaches depend on real-time inventory data and smart order routing, allowing for rapid and cost-effective fulfillment.

4. Intelligent Order Routing:
Advanced analytics and AI forecast demand at the SKU and location level, optimizing inventory placement and automatically choosing the best fulfillment source for each order.

5. Integrated Returns Management:
Omnichannel systems instantly update inventory as soon as a return is processed, whether in-store or by mail, so returned items can be quickly resold.

6. Social Commerce and Mobile Integration:
With the explosion of sales via Instagram, TikTok, and Facebook Shops, inventory on these channels must be as current as on your DTC site or POS system.

7. Store-as-Fulfillment Center:
Retail stores are doubling as local micro-warehouses, fulfilling online orders to speed up delivery, reduce shipping costs, and maximize the value of store inventory.

EDI for Omnichannel: Dropship and Bulk Order Management

A key pillar of advanced omnichannel inventory management is Electronic Data Interchange (EDI), which connects brands with retail partners and marketplaces for seamless order processing.

Dropship EDI to Consumers:
When a consumer places an order on a retailer’s website, AIMS360 receives the EDI order, reserves inventory in real time, and triggers direct-to-consumer fulfillment from your warehouse or 3PL. Shipment confirmations and tracking are sent automatically back to the retailer, ensuring compliance and immediate inventory updates. This workflow allows brands to scale DTC dropship partnerships with leading retailers and marketplaces while keeping inventory accurate and overselling risk-free.

Bulk EDI to Major Retailers:
For traditional wholesale, AIMS360 supports bulk EDI workflows with major retailers. Bulk POs are received and allocated instantly, and all order updates, advance shipping notices (ASNs), and invoices are managed via automated EDI messages. This streamlines fulfillment to multiple locations, minimizes errors, and strengthens relationships with big-box and department store partners.

Why Omnichannel Inventory Management Matters

• Eliminates Overselling and Stockouts: Real-time updates prevent disappointing customers and losing sales from outdated or siloed inventory.
• Maximizes Sell-Through: By exposing inventory to all channels, brands move more product and reduce end-of-season markdowns.
• Boosts Customer Experience: Features like “see in store,” “reserve online,” fast shipping, or pickup meet modern shopper expectations.
• Reduces Costs and Improves Efficiency: Optimized fulfillment and inventory allocation minimize shipping distances, speed up delivery, and reduce excess stock.
• Supports Sustainability: Smarter inventory management leads to less unsold stock and waste, enabling more sustainable business practices.

How AIMS360 Leads in Omnichannel Inventory Management

AIMS360 delivers a single, real-time view of your inventory across every channel—store, web, marketplace, 3PL, and showroom. Every sale, return, transfer, or restock is synced instantly, ensuring total accuracy and flexibility at every customer touchpoint.

• Dynamic Inventory Allocation: Easily shift inventory between channels as trends and demand change.
• Unified Reporting: Analyze sales, stock, and fulfillment across all channels from one dashboard.
• Seamless Integrations: Effortlessly connect to Shopify, Amazon, POS, 3PL, and all your EDI partners.
• Advanced Analytics: Forecast demand, optimize replenishment, and set intelligent safety stock levels.
• Flexible Fulfillment: Power BOPIS, ship-from-store, DTC dropship, and bulk wholesale orders—all within one unified platform.

With AIMS360, your brand can confidently embrace omnichannel selling, delivering the seamless, real-time experience customers expect—while boosting sales, reducing costs, and maximizing every inventory dollar.

Real-Time Visibility Across Every Sales Channel

AIMS360’s omnichannel inventory management solution unifies inventory data from every point of sale—brick-and-mortar stores, your own webstore, wholesale, and leading marketplaces—into a single real-time view. The moment a sale is made online or in-store, stock levels update instantly everywhere, preventing overselling and ensuring customers always see accurate availability. This real-time visibility reduces disappointing “out of stock” messages and builds trust in your brand.

Preventing Stockouts with Smarter Forecasting and Automation

Accurate Demand Forecasting:
By consolidating sales and inventory data from all channels, AIMS360 enables fashion brands to understand true demand trends, not just per channel but for the entire business. This means you can anticipate which styles, colors, or sizes are trending and avoid running out of your bestsellers.

Intelligent Reordering:
AIMS360 automatically triggers purchase orders or transfer requests when stock falls below preset thresholds, ensuring timely replenishment and reducing manual intervention.

Safety Stock Allocation:
Maintain buffer inventory (“safety stock”) in strategic locations, so high-demand channels or regions can quickly access additional units. This keeps you selling even during unexpected demand spikes or supply chain disruptions.

Reducing Overstock and Increasing Efficiency

Optimized Inventory Levels:
By using centralized, real-time inventory data, AIMS360 helps fashion brands avoid costly overstocking. Only the inventory you need is ordered, produced, or transferred, freeing up working capital and reducing warehousing costs.

Streamlined Operations:
Automated order routing, stock adjustments, and reporting minimize manual errors and speed up fulfillment, allowing your team to focus on what matters most—serving customers and growing the business.

Strategic Promotions and Markdowns:
With robust analytics, you can identify slow-moving SKUs early and run targeted promotions or markdowns to move inventory efficiently—preventing deadstock and freeing up valuable shelf or warehouse space.

Flexible Fulfillment and a Superior Customer Experience

AIMS360 empowers brands to offer flexible fulfillment options, including “Buy Online, Pick Up In Store” (BOPIS), ship-from-store, or shipping from the nearest warehouse. This reduces shipping times and costs, maximizes inventory utilization across the entire network, and meets the fast delivery expectations of today’s shoppers.

Sustainability: Reducing Waste and Supporting Circular Fashion

Optimized inventory levels also mean less overproduction and waste. By tracking inventory closely and making data-driven decisions, fashion brands can reduce unsold goods and support sustainable practices—including recycling, donations, or resale models.

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Inventory Management & Inventory Valuation: Why It Matters for Accounting and Compliance

Proper inventory management isn’t just about operational efficiency—it’s also essential for accurate accounting, financial reporting, and long-term profitability in the fashion industry. The way your apparel business tracks, values, and reports inventory directly impacts your bottom line, tax obligations, and strategic decision-making.

Why Inventory Valuation Matters

Inventory often represents one of the largest assets on a fashion company’s balance sheet. The methods and accuracy of inventory valuation affect:

• Cost of Goods Sold (COGS): The value of inventory sold during a period directly impacts gross profit and taxable income.
• Net Income: Incorrect valuation can overstate or understate profits, leading to poor business decisions or compliance issues.
• Tax Reporting: Accurate inventory valuation ensures you report the right numbers to tax authorities and avoid penalties.
• Cash Flow & Planning: Knowing the true value of your inventory helps you optimize cash flow and plan for purchases, markdowns, or investment.

Common Inventory Valuation Methods in Fashion

• FIFO (First-In, First-Out): Assumes the first goods received are the first sold. Common in fashion to reflect true product flow, especially with seasonal or perishable styles.
• LIFO (Last-In, First-Out): Assumes the most recently acquired inventory is sold first. Less common in apparel but can be used for certain accounting strategies (mainly in the U.S.).
• Weighted Average Cost: Values inventory at an average cost per unit, helpful when similar items are bought at different prices.
• Specific Identification: Assigns actual costs to individual items (useful for luxury or limited-edition fashion).

How AIMS360 Supports Accurate Inventory Valuation

AIMS360’s inventory management software streamlines inventory tracking and valuation with:

• Real-time Inventory Counts: Ensures your records are always up to date for both operational and accounting needs.
• Automated Cost Tracking: Tracks costs from raw materials through finished goods, factoring in landed costs, labor, and overhead where needed.
• Seamless Integration with Accounting: Provides accurate inventory data for your ERP or accounting platform, minimizing manual data entry and reducing risk of errors.
• Audit Trail and Compliance: Keeps a full history of inventory movements and valuations, supporting year-end audits and regulatory compliance.

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The Transformational Benefits of a Fully Optimized Apparel Management System

A perfectly optimized apparel management system does more than just track inventory—it empowers fashion businesses to thrive in a fast-moving, competitive industry. When you leverage a comprehensive platform like AIMS360, you unlock a wide range of benefits that drive efficiency, profitability, and growth across your entire operation.

Real-Time Inventory Insights

Gain total visibility into inventory levels in real time, whether you manage a single location or operate across multiple channels and warehouses. With up-to-the-minute data, you can:

• Make smarter purchasing decisions based on actual sales and stock levels
• Reduce costly stockouts and avoid overstock situations
• Align inventory investments with real demand

Efficient Production Management

AIMS360 streamlines production planning, scheduling, and tracking. With integrated tools for managing raw materials, cut tickets, WIP, and finished goods, you can:

• Minimize lead times and reduce production delays
• Optimize manufacturing workflows for faster, more efficient output
• Ensure your products reach the market on time, every time

Cost Optimization and Profitability

Take control of costs throughout your supply chain. With robust analytics and automated workflows, you’re empowered to:

• Minimize material waste and reduce excess inventory
• Negotiate better pricing with suppliers through clearer visibility and planning
• Boost overall profitability by focusing resources where they make the biggest impact

Agility and Data-Driven Sales Growth

The fashion industry rewards brands that can adapt quickly and anticipate what customers want next. With AIMS360, you gain:

• Advanced analytics and demand forecasting to stay ahead of trends
• The agility to respond rapidly to changes in the market or supply chain
• Increased sales and revenue by ensuring the right products are always available, exactly when and where customers want them

5 Star Customer Review

“AIMS360 goes way beyond inventory management. Instead of spending hours uploading new styles or juggling spreadsheets, our team can focus on what we do best—creating and selling great fashion. With AIMS360, everything syncs automatically across our online store, dropship EDI retailers, showrooms, and warehouse. It’s seamless, it’s fast, and it lets us put all our energy into growing the brand. This is the best apparel software.”

Frequently Asked Questions (FAQ)

Does AIMS360 provide real-time material and finished goods inventory visibility?

Absolutely. AIMS360 connects every part of your inventory operation, offering instant insights across all your locations—whether you manage your own warehouse or work with third-party logistics (3PL) partners. You can track raw materials, work-in-progress, and finished goods in real time, monitor inventory movements, and make data-driven decisions to minimize stockouts and overstock.

Can AIMS360 track inventory across multiple warehouses and sales channels?

Yes. AIMS360 is built for omnichannel and multi-location brands. The system unifies inventory data from all warehouses, retail stores, e-commerce sites, and marketplaces into a single dashboard. Inventory levels update automatically after every sale, transfer, or return, so you always know exactly what’s available, wherever your products are stored or sold.

How does AIMS360 handle fabric rolls, lots, and style/size/color variations?

AIMS360 was designed for fashion and apparel businesses, so it goes far beyond basic inventory tracking. You can manage inventory by roll, lot number, style, color, size, and even cut ticket. This granular control supports precise tracking for raw materials, ensures full traceability, and prevents costly errors or mismatches.

Is it possible to integrate AIMS360 with 3PL providers, shipping, and e-commerce platforms?

Definitely. AIMS360 integrates with a wide range of third-party logistics (3PL) providers, shipping carriers, and major e-commerce platforms like Shopify, Magento, and others. These integrations enable seamless data flow between your ERP, warehouses, and online channels—eliminating manual updates and keeping your inventory records accurate in real time.

How does AIMS360 help prevent stockouts and overstocking?

AIMS360’s advanced forecasting and automated reordering tools analyze your sales trends, seasonality, and historical data to predict demand and recommend optimal inventory levels. Automated alerts ensure you replenish stock before critical lows, while robust reporting helps you identify and clear excess or slow-moving inventory before it ties up capital.

Can I manage both raw material and finished goods inventory in AIMS360?

Yes, you can track the full lifecycle of inventory—from raw materials and trims to work-in-progress and finished goods. This is especially valuable for fashion manufacturers and brands managing their own production, as it enables end-to-end visibility and control.

Does AIMS360 support omnichannel fulfillment strategies like BOPIS or ship-from-store?

Yes. With real-time, unified inventory visibility, AIMS360 supports modern omnichannel strategies such as Buy Online, Pick Up In Store (BOPIS), ship-from-store, and other flexible fulfillment models. This lets you maximize sales and use your total inventory more efficiently.

How does AIMS360 improve production efficiency?

AIMS360 streamlines production planning and scheduling by linking inventory, cut tickets, BOMs (Bill of Materials), and manufacturing workflows. This reduces lead times, prevents delays, and ensures materials are available when and where they’re needed for efficient production.

What kind of reporting and analytics does AIMS360 offer for inventory management?

AIMS360 delivers robust, fashion-focused analytics: sell-through by SKU, style, color, size, inventory aging, stockouts, deadstock, and real-time valuation. Customizable dashboards and reports give your team the actionable insights needed for smarter, faster decision-making.

Is AIMS360 cloud-based and accessible from anywhere?

Yes. AIMS360 is a modern, cloud-based solution—meaning your team can access inventory, orders, and analytics securely from any location, whether on the sales floor, in the warehouse, or working remotely.

Can AIMS360 handle multichannel inventory management?

Absolutely! AIMS360 is purpose-built for the fashion industry, offering seamless multichannel inventory management across various platforms. Whether you’re selling through e-commerce sites like Shopify, marketplaces such as Amazon, or physical retail locations, AIMS360 ensures real-time synchronization of inventory data. This integration minimizes errors, prevents overselling, and provides a consistent customer experience across all channels.

With AIMS360, you can:

• Sync Inventory Across Channels: Maintain accurate stock levels by automatically updating inventory data across all sales platforms.
• Streamline Order Fulfillment: Automate order processing from multiple channels, ensuring timely and accurate deliveries.
• Gain Real-Time Insights: Access up-to-the-minute inventory reports to make informed decisions and optimize stock levels.
• Enhance Customer Satisfaction: Provide consistent product availability and information, improving the shopping experience across all touchpoints.

AIMS360 integrates with leading e-commerce platforms, marketplaces, POS systems, accounting software, and 3PL providers. Discover our full list of integrations here: AIMS360 Integrations.

By centralizing your inventory management with AIMS360, you can efficiently manage and scale your fashion business across multiple sales channels.

How can apparel inventory software help with compliance and traceability?

AIMS360 apparel inventory software enables detailed tracking of inventory by lot, roll, supplier, and material, supporting compliance with industry standards and regulations. Full audit trails and historical movement logs ensure traceability from raw material to finished goods—crucial for quality assurance, recalls, or regulatory audits.

Does fashion inventory software help with demand forecasting and seasonal trends?

Yes, fashion inventory software like AIMS360 analyzes historical sales, seasonal spikes, and trend data to forecast demand accurately. This empowers fashion businesses to optimize purchasing and production, align inventory with anticipated demand, and minimize overstock and stockouts.

Is AIMS360 suitable for both DTC brands and wholesalers?

Absolutely. Whether you’re a B2C brand, B2B wholesaler, private labeler, or multi-channel seller, AIMS360’s configurable features and real-time reporting make it an ideal solution for the full spectrum of apparel businesses.

Conclusion: The Future of Fashion Inventory is Unified and Intelligent

Modern clothing inventory management isn’t just about counting stock—it’s about having the right product, in the right place, at the right time. With AIMS360, fashion brands of any size can:

• Gain real-time, granular inventory visibility across all channels and warehouses
• Automate procurement, receiving, and inventory counting for unmatched accuracy
• Track complex attributes like lots, rolls, and WIP down to the smallest detail
• Seamlessly integrate with 3PLs, e-commerce, and retail systems
• Leverage robust analytics for smarter forecasting and faster decision-making
• Delight customers, reduce waste, and unlock new growth opportunities

Ready to future-proof your fashion business with AIMS360 software? Contact us for a demo and see the difference true fashion inventory management makes.

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