This paper explores the transformative impact of implementing a specialized Smart Inventory Management System (SIMS) empowered by the Internet of Things (IoT) in the textile industry. SIMS brings about a significant paradigm shift by optimizing spatial utilization and redefining traditional inventory processes, making advanced warehouse management accessible and affordable for businesses of all sizes. Our SIMS implementation features a cost-effective integration of an alert system, resulting in substantial savings. This proactive system ensures quick responses to inventory needs, minimizing downtime in production by expediting material retrieval. The affordability achieved through this integration makes SIMS an attractive option for textile manufacturers seeking to enhance warehouse management efficiency. Tailored for the textile sector, SIMS excels in controlling inventory, streamlining order processing, and managing deliveries. The dynamic environment enabled by IoT technology allows businesses to maximize warehouse space usage without incurring excessive costs. This comprehensive and affordable solution represents a significant step towards democratizing access to advanced inventory management tools, empowering textile businesses to thrive in the digital age. In summary, our SIMS implementation in the textile industry not only achieves substantial cost reduction but also fosters a more inclusive and efficient future for warehouse management.