Inventory Manager: Job Description and Salary

Countless companies sell physical or “tangible” products to customers, from massive corporations like Amazon to small brick-and-mortar shops on main streets across the country. For any business that sells products, getting caught without enough inventory risks selling out of items and upsetting customers, while being overstocked takes up space and costs money, which makes inventory management an essential aspect of its day-to-day business operations.

To oversee this process and help ensure profitability, businesses rely on inventory managers. These professionals guide the ordering, storing, using, and selling of a company’s inventory as well as supervise the people and processes involved. Effective inventory managers can help their company save time and money while increasing customer satisfaction. 

For individuals interested in this career path, it’s beneficial to understand an inventory manager’s job description and the steps they need to take to qualify for the role, including earning a bachelor’s degree in a relevant field such as business management . 

What Does an Inventory Manager Do?

Managing inventory can be a complex task, especially for large companies that move a lot of products. Businesses need to know how much to purchase or produce, when to restock, and when to sell and at what price. 

Inventory managers oversee and maintain a company’s entire inventory—which includes everything from the raw materials it uses to create its products to the finished products themselves—ensuring the company has enough items to sell, ship, or deliver. They also manage the physical space where materials and products are stored and the staff who work there. 

Inventory managers have many responsibilities, often including the following: 

• Using software tools and/or physically counting stock to determine the exact level of inventory available
• Restocking or ordering more inventory when items are low
• Sourcing and maintaining relationships with suppliers 
• Recruiting, hiring, and training staff—including warehouse workers and inventory clerks—and creating schedules for them 
• Analyzing sales and projecting future inventory needs
• Collaborating with professionals in other departments within the organization, such as sales or operations managers 

Where Do Inventory Managers Work?

Inventory management is crucial for virtually every kind of business, which is why inventory managers work for companies of all sizes across a variety of industries. They work in retail, food services, technology, manufacturing, and transportation, among other sectors. An inventory manager’s role and responsibilities can vary depending on the industry they work in. 

The U.S. Bureau of Labor Statistics (BLS) reports that the majority of logisticians, professionals with a similar role, were employed in the following industries in 2022:

• Manufacturing: 24%
• Federal government: 17%
• Professional, scientific, and technical services: 16%
• Management of companies and enterprises: 10%
• Wholesale trade: 10%

Inventory Manager Education, Experience, and Skill Requirements

While the details of each person’s professional journey will vary, becoming an inventory manager generally entails some combination of education and work experience. Through these experiences, individuals can develop the technical expertise and skills they need to excel as inventory managers.  

Education

Employers typically require inventory managers to hold at least a bachelor’s degree in business , inventory management, supply chain management, or a related field. Coursework that focuses on business operations and accounting as well as on the development of leadership competencies is essential. 

Experience

Gaining professional experience can help individuals prepare to take on the responsibilities of an inventory manager, and some work experience is often required by employers. By working in an entry-level role, such as an inventory control clerk or warehouse worker role, aspiring inventory managers can hone foundational knowledge and skills in areas such as picking-packing processes, the use of warehouse equipment and supply chain software, and occupational health and safety practices. 

Certification

Though it’s typically optional, earning a certification can help aspiring inventory managers—as well as those already in the role—stand out to employers. It may even help job seekers make up for a lack of work experience, potentially leveling the playing field when they’re competing with more seasoned professionals. 

The Association for Supply Chain Management (ASCM), for example, administers the certified in planning and inventory management (CPIM) credential. This is a popular certification, preferred by many employers. It requires passing an exam consisting of 150 questions. The ASCM offers online and in-person prep classes as well as study materials for those who prefer to study independently. 

Skills

Through education, experience, and certification, prospective inventory managers should hone certain key skills and competencies. Some of the most important skills for inventory managers are:

• Multitasking skills: An inventory manager’s job involves juggling many different responsibilities throughout the day: supervising staff, counting and restocking inventory, and communicating with suppliers and other department heads. The ability to multitask can help them balance these duties and complete them on time. 
• Technological expertise: Depending on the size of their organization, an inventory manager may rely on monitoring software to keep track of inventory levels and reorder stock when needed. They may also use forecasting tools to help them project future inventory needs. Being adept at using these technological tools is crucial.
• Interpersonal skills: Inventory managers regularly interact with warehouse staff, suppliers, and professionals in other departments. A strong set of interpersonal skills can enable them to cultivate meaningful relationships with suppliers as well as professionals in other business units, like sales or customer service managers.

Inventory Manager Salary and Job Outlook

Because they play such a critical role in business operations, inventory managers are generally well paid. According to Payscale, the median annual salary for inventory managers was approximately $60,700 as of July 2024, with base salaries ranging from $41,000 to $89,000. 

Several factors can affect an inventory manager’s earnings, including their level of experience, the industry they’re employed in, and where they work. For example, entry-level inventory managers (those with less than one year of experience) had a median salary of roughly $51,700, according to Payscale, while those with five or more years of experience had a median salary of around $62,300. Notably, these median salaries are higher than the median for all occupations, $48,060, as reported by the BLS. 

Projections from the BLS indicate that employment of professionals working in inventory management will grow over the next several years. Employment of logisticians, for example, is projected to grow by 18% between 2022 and 2032, according to the BLS, which is much faster than the average growth projected for all occupations (3%). During the same period, employment of management analysts is projected to grow 10%.

The expansion of e-commerce is expected to be one of the main drivers of this growth. According to the U.S. Census Bureau, e-commerce accounted for nearly 16% of all retail sales in the first quarter of 2024. Additionally, Statista reports that revenue in the e-commerce market has risen substantially over the past several years and is expected to continue to increase in the coming years, with projected growth of more than 50% between 2024 and 2029 alone.

Become an Inventory Manager With a Bachelor’s in Business Management

Inventory managers are vital to business operations, ensuring that companies have the products they need when they need them. Effective inventory management saves time and money, boosts productivity, and keeps customers happy. 

If a career as an inventory manager appeals to you, explore the Bachelor of Arts in Business Management program at Wilson College Online. The program is designed to develop well-rounded leaders by focusing on an array of business concepts, such as accounting, operational management, ethics, and analytical decision-making. And with our flexible, asynchronous fully online coursework, you can earn your degree at your own pace. 

Learn more about the program and find out how Wilson College Online can prepare you for a successful business career. 

Recommended Readings

Management vs. Leadership: Similarities and Differences

Management Analyst: Salary, Job Description, and Requirements

What Can You Do With a Business Management Degree?

Sources:

Adobe, “Learn About Inventory Management and Why It’s Important”

Association for Supply Chain Management, Certified in Planning and Inventory Management

Indeed, “Inventory Manager Job Description and Responsibilities”

Investopedia, “Inventory Management: Definition, How It Works, Methods and Examples”

Payscale, Average Inventory Manager Salary

Statista, Revenue of the E-Commerce Industry in the U.S. 2019-2029

U.S. Bureau of Labor Statistics, Logisticians

U.S. Bureau of Labor Statistics, Management Analysts

U.S. Census Bureau, Quarterly Retail E-Commerce Sales