In developing enterprises and the constant demands of the product diversity, traditional Inventory Management model can’t achieve that, due to its heavy workload and low efficiency. This paper presents a new type of intelligent Inventory Management System based on the IoT and explains the principles and structure of it. This system has great advantages compared to the traditional mode, and we expect good prospects for its development. Inventory Management is a key area for customer service and cost optimization in any manufacturing setup. As companies turn global and have thousands of components and hundreds of warehouses the inventory becomes a nightmare and a lot of time is spend in tracking inventory and ensuring right shipments. Traditional systems of robotic arms for inventory pick and drop have been based on premises of marking areas of the warehouse and tracking it.