diff --git a/packages/backend/src/db/index.ts b/packages/backend/src/db/index.ts
index 3d68ee2..97dc55e 100644
--- a/packages/backend/src/db/index.ts
+++ b/packages/backend/src/db/index.ts
@@ -1,3 +1,4 @@
 export * from './schema/stores.js'
 export * from './schema/users.js'
 export * from './schema/accounts.js'
+export * from './schema/inventory.js'
diff --git a/packages/backend/src/db/migrations/0004_peaceful_wendell_rand.sql b/packages/backend/src/db/migrations/0004_peaceful_wendell_rand.sql
new file mode 100644
index 0000000..b72d049
--- /dev/null
+++ b/packages/backend/src/db/migrations/0004_peaceful_wendell_rand.sql
@@ -0,0 +1,30 @@
+CREATE TABLE "category" (
+	"id" uuid PRIMARY KEY DEFAULT gen_random_uuid() NOT NULL,
+	"company_id" uuid NOT NULL,
+	"parent_id" uuid,
+	"name" varchar(255) NOT NULL,
+	"description" text,
+	"sort_order" integer DEFAULT 0 NOT NULL,
+	"is_active" boolean DEFAULT true NOT NULL,
+	"created_at" timestamp with time zone DEFAULT now() NOT NULL,
+	"updated_at" timestamp with time zone DEFAULT now() NOT NULL
+);
+--> statement-breakpoint
+CREATE TABLE "supplier" (
+	"id" uuid PRIMARY KEY DEFAULT gen_random_uuid() NOT NULL,
+	"company_id" uuid NOT NULL,
+	"name" varchar(255) NOT NULL,
+	"contact_name" varchar(255),
+	"email" varchar(255),
+	"phone" varchar(50),
+	"website" varchar(255),
+	"account_number" varchar(100),
+	"payment_terms" varchar(100),
+	"notes" text,
+	"is_active" boolean DEFAULT true NOT NULL,
+	"created_at" timestamp with time zone DEFAULT now() NOT NULL,
+	"updated_at" timestamp with time zone DEFAULT now() NOT NULL
+);
+--> statement-breakpoint
+ALTER TABLE "category" ADD CONSTRAINT "category_company_id_company_id_fk" FOREIGN KEY ("company_id") REFERENCES "public"."company"("id") ON DELETE no action ON UPDATE no action;--> statement-breakpoint
+ALTER TABLE "supplier" ADD CONSTRAINT "supplier_company_id_company_id_fk" FOREIGN KEY ("company_id") REFERENCES "public"."company"("id") ON DELETE no action ON UPDATE no action;
\ No newline at end of file
diff --git a/packages/backend/src/db/migrations/meta/0004_snapshot.json b/packages/backend/src/db/migrations/meta/0004_snapshot.json
new file mode 100644
index 0000000..952f462
--- /dev/null
+++ b/packages/backend/src/db/migrations/meta/0004_snapshot.json
@@ -0,0 +1,823 @@
+{
+  "id": "eb655a87-6e46-4ea1-a129-c10f522fb093",
+  "prevId": "906895d3-deba-442a-991d-d9245c960d18",
+  "version": "7",
+  "dialect": "postgresql",
+  "tables": {
+    "public.category": {
+      "name": "category",
+      "schema": "",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "uuid",
+          "primaryKey": true,
+          "notNull": true,
+          "default": "gen_random_uuid()"
+        },
+        "company_id": {
+          "name": "company_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "parent_id": {
+          "name": "parent_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "name": {
+          "name": "name",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "description": {
+          "name": "description",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "sort_order": {
+          "name": "sort_order",
+          "type": "integer",
+          "primaryKey": false,
+          "notNull": true,
+          "default": 0
+        },
+        "is_active": {
+          "name": "is_active",
+          "type": "boolean",
+          "primaryKey": false,
+          "notNull": true,
+          "default": true
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "category_company_id_company_id_fk": {
+          "name": "category_company_id_company_id_fk",
+          "tableFrom": "category",
+          "tableTo": "company",
+          "columnsFrom": [
+            "company_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "no action",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "policies": {},
+      "checkConstraints": {},
+      "isRLSEnabled": false
+    },
+    "public.supplier": {
+      "name": "supplier",
+      "schema": "",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "uuid",
+          "primaryKey": true,
+          "notNull": true,
+          "default": "gen_random_uuid()"
+        },
+        "company_id": {
+          "name": "company_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "name": {
+          "name": "name",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "contact_name": {
+          "name": "contact_name",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "email": {
+          "name": "email",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "phone": {
+          "name": "phone",
+          "type": "varchar(50)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "website": {
+          "name": "website",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "account_number": {
+          "name": "account_number",
+          "type": "varchar(100)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "payment_terms": {
+          "name": "payment_terms",
+          "type": "varchar(100)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "notes": {
+          "name": "notes",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "is_active": {
+          "name": "is_active",
+          "type": "boolean",
+          "primaryKey": false,
+          "notNull": true,
+          "default": true
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "supplier_company_id_company_id_fk": {
+          "name": "supplier_company_id_company_id_fk",
+          "tableFrom": "supplier",
+          "tableTo": "company",
+          "columnsFrom": [
+            "company_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "no action",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "policies": {},
+      "checkConstraints": {},
+      "isRLSEnabled": false
+    },
+    "public.user": {
+      "name": "user",
+      "schema": "",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "uuid",
+          "primaryKey": true,
+          "notNull": true,
+          "default": "gen_random_uuid()"
+        },
+        "company_id": {
+          "name": "company_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "email": {
+          "name": "email",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "password_hash": {
+          "name": "password_hash",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "first_name": {
+          "name": "first_name",
+          "type": "varchar(100)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "last_name": {
+          "name": "last_name",
+          "type": "varchar(100)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "role": {
+          "name": "role",
+          "type": "user_role",
+          "typeSchema": "public",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "'staff'"
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "user_company_id_company_id_fk": {
+          "name": "user_company_id_company_id_fk",
+          "tableFrom": "user",
+          "tableTo": "company",
+          "columnsFrom": [
+            "company_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "no action",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {
+        "user_email_unique": {
+          "name": "user_email_unique",
+          "nullsNotDistinct": false,
+          "columns": [
+            "email"
+          ]
+        }
+      },
+      "policies": {},
+      "checkConstraints": {},
+      "isRLSEnabled": false
+    },
+    "public.company": {
+      "name": "company",
+      "schema": "",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "uuid",
+          "primaryKey": true,
+          "notNull": true,
+          "default": "gen_random_uuid()"
+        },
+        "name": {
+          "name": "name",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "phone": {
+          "name": "phone",
+          "type": "varchar(50)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "email": {
+          "name": "email",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "timezone": {
+          "name": "timezone",
+          "type": "varchar(100)",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "'America/Chicago'"
+        },
+        "notes": {
+          "name": "notes",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {},
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "policies": {},
+      "checkConstraints": {},
+      "isRLSEnabled": false
+    },
+    "public.location": {
+      "name": "location",
+      "schema": "",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "uuid",
+          "primaryKey": true,
+          "notNull": true,
+          "default": "gen_random_uuid()"
+        },
+        "company_id": {
+          "name": "company_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "name": {
+          "name": "name",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "address": {
+          "name": "address",
+          "type": "jsonb",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "phone": {
+          "name": "phone",
+          "type": "varchar(50)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "email": {
+          "name": "email",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "timezone": {
+          "name": "timezone",
+          "type": "varchar(100)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "is_active": {
+          "name": "is_active",
+          "type": "boolean",
+          "primaryKey": false,
+          "notNull": true,
+          "default": true
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "location_company_id_company_id_fk": {
+          "name": "location_company_id_company_id_fk",
+          "tableFrom": "location",
+          "tableTo": "company",
+          "columnsFrom": [
+            "company_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "no action",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "policies": {},
+      "checkConstraints": {},
+      "isRLSEnabled": false
+    },
+    "public.account_processor_link": {
+      "name": "account_processor_link",
+      "schema": "",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "uuid",
+          "primaryKey": true,
+          "notNull": true,
+          "default": "gen_random_uuid()"
+        },
+        "account_id": {
+          "name": "account_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "company_id": {
+          "name": "company_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "processor": {
+          "name": "processor",
+          "type": "payment_processor",
+          "typeSchema": "public",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "processor_customer_id": {
+          "name": "processor_customer_id",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "is_active": {
+          "name": "is_active",
+          "type": "boolean",
+          "primaryKey": false,
+          "notNull": true,
+          "default": true
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "account_processor_link_account_id_account_id_fk": {
+          "name": "account_processor_link_account_id_account_id_fk",
+          "tableFrom": "account_processor_link",
+          "tableTo": "account",
+          "columnsFrom": [
+            "account_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "no action",
+          "onUpdate": "no action"
+        },
+        "account_processor_link_company_id_company_id_fk": {
+          "name": "account_processor_link_company_id_company_id_fk",
+          "tableFrom": "account_processor_link",
+          "tableTo": "company",
+          "columnsFrom": [
+            "company_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "no action",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "policies": {},
+      "checkConstraints": {},
+      "isRLSEnabled": false
+    },
+    "public.account": {
+      "name": "account",
+      "schema": "",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "uuid",
+          "primaryKey": true,
+          "notNull": true,
+          "default": "gen_random_uuid()"
+        },
+        "company_id": {
+          "name": "company_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "account_number": {
+          "name": "account_number",
+          "type": "varchar(50)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "name": {
+          "name": "name",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "email": {
+          "name": "email",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "phone": {
+          "name": "phone",
+          "type": "varchar(50)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "address": {
+          "name": "address",
+          "type": "jsonb",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "billing_mode": {
+          "name": "billing_mode",
+          "type": "billing_mode",
+          "typeSchema": "public",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "'consolidated'"
+        },
+        "notes": {
+          "name": "notes",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "is_active": {
+          "name": "is_active",
+          "type": "boolean",
+          "primaryKey": false,
+          "notNull": true,
+          "default": true
+        },
+        "legacy_id": {
+          "name": "legacy_id",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "legacy_source": {
+          "name": "legacy_source",
+          "type": "varchar(50)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "migrated_at": {
+          "name": "migrated_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "account_company_id_company_id_fk": {
+          "name": "account_company_id_company_id_fk",
+          "tableFrom": "account",
+          "tableTo": "company",
+          "columnsFrom": [
+            "company_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "no action",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "policies": {},
+      "checkConstraints": {},
+      "isRLSEnabled": false
+    },
+    "public.member": {
+      "name": "member",
+      "schema": "",
+      "columns": {
+        "id": {
+          "name": "id",
+          "type": "uuid",
+          "primaryKey": true,
+          "notNull": true,
+          "default": "gen_random_uuid()"
+        },
+        "account_id": {
+          "name": "account_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "company_id": {
+          "name": "company_id",
+          "type": "uuid",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "first_name": {
+          "name": "first_name",
+          "type": "varchar(100)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "last_name": {
+          "name": "last_name",
+          "type": "varchar(100)",
+          "primaryKey": false,
+          "notNull": true
+        },
+        "date_of_birth": {
+          "name": "date_of_birth",
+          "type": "date",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "is_minor": {
+          "name": "is_minor",
+          "type": "boolean",
+          "primaryKey": false,
+          "notNull": true,
+          "default": false
+        },
+        "email": {
+          "name": "email",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "phone": {
+          "name": "phone",
+          "type": "varchar(50)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "notes": {
+          "name": "notes",
+          "type": "text",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "legacy_id": {
+          "name": "legacy_id",
+          "type": "varchar(255)",
+          "primaryKey": false,
+          "notNull": false
+        },
+        "created_at": {
+          "name": "created_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        },
+        "updated_at": {
+          "name": "updated_at",
+          "type": "timestamp with time zone",
+          "primaryKey": false,
+          "notNull": true,
+          "default": "now()"
+        }
+      },
+      "indexes": {},
+      "foreignKeys": {
+        "member_account_id_account_id_fk": {
+          "name": "member_account_id_account_id_fk",
+          "tableFrom": "member",
+          "tableTo": "account",
+          "columnsFrom": [
+            "account_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "no action",
+          "onUpdate": "no action"
+        },
+        "member_company_id_company_id_fk": {
+          "name": "member_company_id_company_id_fk",
+          "tableFrom": "member",
+          "tableTo": "company",
+          "columnsFrom": [
+            "company_id"
+          ],
+          "columnsTo": [
+            "id"
+          ],
+          "onDelete": "no action",
+          "onUpdate": "no action"
+        }
+      },
+      "compositePrimaryKeys": {},
+      "uniqueConstraints": {},
+      "policies": {},
+      "checkConstraints": {},
+      "isRLSEnabled": false
+    }
+  },
+  "enums": {
+    "public.user_role": {
+      "name": "user_role",
+      "schema": "public",
+      "values": [
+        "admin",
+        "manager",
+        "staff",
+        "technician",
+        "instructor"
+      ]
+    },
+    "public.billing_mode": {
+      "name": "billing_mode",
+      "schema": "public",
+      "values": [
+        "consolidated",
+        "split"
+      ]
+    },
+    "public.payment_processor": {
+      "name": "payment_processor",
+      "schema": "public",
+      "values": [
+        "stripe",
+        "global_payments"
+      ]
+    }
+  },
+  "schemas": {},
+  "sequences": {},
+  "roles": {},
+  "policies": {},
+  "views": {},
+  "_meta": {
+    "columns": {},
+    "schemas": {},
+    "tables": {}
+  }
+}
\ No newline at end of file
diff --git a/packages/backend/src/db/migrations/meta/_journal.json b/packages/backend/src/db/migrations/meta/_journal.json
index ee71e4b..d472338 100644
--- a/packages/backend/src/db/migrations/meta/_journal.json
+++ b/packages/backend/src/db/migrations/meta/_journal.json
@@ -29,6 +29,13 @@
       "when": 1774651222033,
       "tag": "0003_round_captain_midlands",
       "breakpoints": true
+    },
+    {
+      "idx": 4,
+      "version": "7",
+      "when": 1774652800605,
+      "tag": "0004_peaceful_wendell_rand",
+      "breakpoints": true
     }
   ]
 }
\ No newline at end of file
diff --git a/packages/backend/src/db/schema/inventory.ts b/packages/backend/src/db/schema/inventory.ts
new file mode 100644
index 0000000..16a5385
--- /dev/null
+++ b/packages/backend/src/db/schema/inventory.ts
@@ -0,0 +1,39 @@
+import { pgTable, uuid, varchar, text, timestamp, boolean, integer } from 'drizzle-orm/pg-core'
+import { companies } from './stores.js'
+
+export const categories = pgTable('category', {
+  id: uuid('id').primaryKey().defaultRandom(),
+  companyId: uuid('company_id')
+    .notNull()
+    .references(() => companies.id),
+  parentId: uuid('parent_id'),
+  name: varchar('name', { length: 255 }).notNull(),
+  description: text('description'),
+  sortOrder: integer('sort_order').notNull().default(0),
+  isActive: boolean('is_active').notNull().default(true),
+  createdAt: timestamp('created_at', { withTimezone: true }).notNull().defaultNow(),
+  updatedAt: timestamp('updated_at', { withTimezone: true }).notNull().defaultNow(),
+})
+
+export const suppliers = pgTable('supplier', {
+  id: uuid('id').primaryKey().defaultRandom(),
+  companyId: uuid('company_id')
+    .notNull()
+    .references(() => companies.id),
+  name: varchar('name', { length: 255 }).notNull(),
+  contactName: varchar('contact_name', { length: 255 }),
+  email: varchar('email', { length: 255 }),
+  phone: varchar('phone', { length: 50 }),
+  website: varchar('website', { length: 255 }),
+  accountNumber: varchar('account_number', { length: 100 }),
+  paymentTerms: varchar('payment_terms', { length: 100 }),
+  notes: text('notes'),
+  isActive: boolean('is_active').notNull().default(true),
+  createdAt: timestamp('created_at', { withTimezone: true }).notNull().defaultNow(),
+  updatedAt: timestamp('updated_at', { withTimezone: true }).notNull().defaultNow(),
+})
+
+export type Category = typeof categories.$inferSelect
+export type CategoryInsert = typeof categories.$inferInsert
+export type Supplier = typeof suppliers.$inferSelect
+export type SupplierInsert = typeof suppliers.$inferInsert
diff --git a/packages/backend/src/main.ts b/packages/backend/src/main.ts
index 49ae0f1..7a70ca2 100644
--- a/packages/backend/src/main.ts
+++ b/packages/backend/src/main.ts
@@ -8,6 +8,7 @@ import { devAuthPlugin } from './plugins/dev-auth.js'
 import { healthRoutes } from './routes/v1/health.js'
 import { authRoutes } from './routes/v1/auth.js'
 import { accountRoutes } from './routes/v1/accounts.js'
+import { inventoryRoutes } from './routes/v1/inventory.js'
 
 export async function buildApp() {
   const app = Fastify({
@@ -35,6 +36,7 @@ export async function buildApp() {
   await app.register(healthRoutes, { prefix: '/v1' })
   await app.register(authRoutes, { prefix: '/v1' })
   await app.register(accountRoutes, { prefix: '/v1' })
+  await app.register(inventoryRoutes, { prefix: '/v1' })
 
   return app
 }
diff --git a/packages/backend/src/plugins/database.ts b/packages/backend/src/plugins/database.ts
index 9cde59b..4f853de 100644
--- a/packages/backend/src/plugins/database.ts
+++ b/packages/backend/src/plugins/database.ts
@@ -4,8 +4,9 @@ import postgres from 'postgres'
 import * as storeSchema from '../db/schema/stores.js'
 import * as userSchema from '../db/schema/users.js'
 import * as accountSchema from '../db/schema/accounts.js'
+import * as inventorySchema from '../db/schema/inventory.js'
 
-const schema = { ...storeSchema, ...userSchema, ...accountSchema }
+const schema = { ...storeSchema, ...userSchema, ...accountSchema, ...inventorySchema }
 
 declare module 'fastify' {
   interface FastifyInstance {
diff --git a/packages/backend/src/routes/v1/inventory.test.ts b/packages/backend/src/routes/v1/inventory.test.ts
new file mode 100644
index 0000000..6044120
--- /dev/null
+++ b/packages/backend/src/routes/v1/inventory.test.ts
@@ -0,0 +1,193 @@
+import { describe, it, expect, beforeAll, beforeEach, afterAll } from 'bun:test'
+import type { FastifyInstance } from 'fastify'
+import {
+  createTestApp,
+  cleanDb,
+  seedTestCompany,
+  registerAndLogin,
+} from '../../test/helpers.js'
+
+describe('Category routes', () => {
+  let app: FastifyInstance
+  let token: string
+
+  beforeAll(async () => {
+    app = await createTestApp()
+  })
+
+  beforeEach(async () => {
+    await cleanDb(app)
+    await seedTestCompany(app)
+    const auth = await registerAndLogin(app)
+    token = auth.token
+  })
+
+  afterAll(async () => {
+    await app.close()
+  })
+
+  it('creates a category', async () => {
+    const response = await app.inject({
+      method: 'POST',
+      url: '/v1/categories',
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: 'Guitars', description: 'All guitars', sortOrder: 1 },
+    })
+
+    expect(response.statusCode).toBe(201)
+    expect(response.json().name).toBe('Guitars')
+    expect(response.json().sortOrder).toBe(1)
+  })
+
+  it('creates a child category', async () => {
+    const parentRes = await app.inject({
+      method: 'POST',
+      url: '/v1/categories',
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: 'Instruments' },
+    })
+    const parentId = parentRes.json().id
+
+    const childRes = await app.inject({
+      method: 'POST',
+      url: '/v1/categories',
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: 'Brass', parentId },
+    })
+
+    expect(childRes.statusCode).toBe(201)
+    expect(childRes.json().parentId).toBe(parentId)
+  })
+
+  it('lists categories sorted by sortOrder', async () => {
+    await app.inject({
+      method: 'POST',
+      url: '/v1/categories',
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: 'Zzz Last', sortOrder: 99 },
+    })
+    await app.inject({
+      method: 'POST',
+      url: '/v1/categories',
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: 'Aaa First', sortOrder: 1 },
+    })
+
+    const response = await app.inject({
+      method: 'GET',
+      url: '/v1/categories',
+      headers: { authorization: `Bearer ${token}` },
+    })
+
+    expect(response.statusCode).toBe(200)
+    const body = response.json()
+    expect(body.length).toBe(2)
+    expect(body[0].name).toBe('Aaa First')
+  })
+
+  it('soft-deletes a category', async () => {
+    const createRes = await app.inject({
+      method: 'POST',
+      url: '/v1/categories',
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: 'To Delete' },
+    })
+
+    const delRes = await app.inject({
+      method: 'DELETE',
+      url: `/v1/categories/${createRes.json().id}`,
+      headers: { authorization: `Bearer ${token}` },
+    })
+    expect(delRes.json().isActive).toBe(false)
+
+    const listRes = await app.inject({
+      method: 'GET',
+      url: '/v1/categories',
+      headers: { authorization: `Bearer ${token}` },
+    })
+    expect(listRes.json().length).toBe(0)
+  })
+})
+
+describe('Supplier routes', () => {
+  let app: FastifyInstance
+  let token: string
+
+  beforeAll(async () => {
+    app = await createTestApp()
+  })
+
+  beforeEach(async () => {
+    await cleanDb(app)
+    await seedTestCompany(app)
+    const auth = await registerAndLogin(app, { email: `supplier-${Date.now()}@test.com` })
+    token = auth.token
+  })
+
+  afterAll(async () => {
+    await app.close()
+  })
+
+  it('creates a supplier', async () => {
+    const response = await app.inject({
+      method: 'POST',
+      url: '/v1/suppliers',
+      headers: { authorization: `Bearer ${token}` },
+      payload: {
+        name: 'RS Musical',
+        contactName: 'Bob Smith',
+        email: 'bob@rsmusical.com',
+        paymentTerms: 'Net 30',
+      },
+    })
+
+    expect(response.statusCode).toBe(201)
+    expect(response.json().name).toBe('RS Musical')
+    expect(response.json().paymentTerms).toBe('Net 30')
+  })
+
+  it('searches suppliers by name', async () => {
+    await app.inject({
+      method: 'POST',
+      url: '/v1/suppliers',
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: "Ferree's Tools" },
+    })
+    await app.inject({
+      method: 'POST',
+      url: '/v1/suppliers',
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: 'Allied Supply' },
+    })
+
+    const response = await app.inject({
+      method: 'GET',
+      url: '/v1/suppliers/search?q=ferree',
+      headers: { authorization: `Bearer ${token}` },
+    })
+
+    expect(response.statusCode).toBe(200)
+    expect(response.json().length).toBe(1)
+    expect(response.json()[0].name).toBe("Ferree's Tools")
+  })
+
+  it('updates a supplier', async () => {
+    const createRes = await app.inject({
+      method: 'POST',
+      url: '/v1/suppliers',
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: 'Old Name' },
+    })
+
+    const updateRes = await app.inject({
+      method: 'PATCH',
+      url: `/v1/suppliers/${createRes.json().id}`,
+      headers: { authorization: `Bearer ${token}` },
+      payload: { name: 'New Name', paymentTerms: 'COD' },
+    })
+
+    expect(updateRes.statusCode).toBe(200)
+    expect(updateRes.json().name).toBe('New Name')
+    expect(updateRes.json().paymentTerms).toBe('COD')
+  })
+})
diff --git a/packages/backend/src/routes/v1/inventory.ts b/packages/backend/src/routes/v1/inventory.ts
new file mode 100644
index 0000000..3800d1d
--- /dev/null
+++ b/packages/backend/src/routes/v1/inventory.ts
@@ -0,0 +1,99 @@
+import type { FastifyPluginAsync } from 'fastify'
+import {
+  CategoryCreateSchema,
+  CategoryUpdateSchema,
+  SupplierCreateSchema,
+  SupplierUpdateSchema,
+} from '@forte/shared/schemas'
+import { CategoryService, SupplierService } from '../../services/inventory.service.js'
+
+export const inventoryRoutes: FastifyPluginAsync = async (app) => {
+  // --- Categories ---
+
+  app.post('/categories', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const parsed = CategoryCreateSchema.safeParse(request.body)
+    if (!parsed.success) {
+      return reply.status(400).send({ error: { message: 'Validation failed', details: parsed.error.flatten(), statusCode: 400 } })
+    }
+    const category = await CategoryService.create(app.db, request.companyId, parsed.data)
+    return reply.status(201).send(category)
+  })
+
+  app.get('/categories', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const list = await CategoryService.list(app.db, request.companyId)
+    return reply.send(list)
+  })
+
+  app.get('/categories/:id', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const { id } = request.params as { id: string }
+    const category = await CategoryService.getById(app.db, request.companyId, id)
+    if (!category) return reply.status(404).send({ error: { message: 'Category not found', statusCode: 404 } })
+    return reply.send(category)
+  })
+
+  app.patch('/categories/:id', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const { id } = request.params as { id: string }
+    const parsed = CategoryUpdateSchema.safeParse(request.body)
+    if (!parsed.success) {
+      return reply.status(400).send({ error: { message: 'Validation failed', details: parsed.error.flatten(), statusCode: 400 } })
+    }
+    const category = await CategoryService.update(app.db, request.companyId, id, parsed.data)
+    if (!category) return reply.status(404).send({ error: { message: 'Category not found', statusCode: 404 } })
+    return reply.send(category)
+  })
+
+  app.delete('/categories/:id', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const { id } = request.params as { id: string }
+    const category = await CategoryService.softDelete(app.db, request.companyId, id)
+    if (!category) return reply.status(404).send({ error: { message: 'Category not found', statusCode: 404 } })
+    return reply.send(category)
+  })
+
+  // --- Suppliers ---
+
+  app.post('/suppliers', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const parsed = SupplierCreateSchema.safeParse(request.body)
+    if (!parsed.success) {
+      return reply.status(400).send({ error: { message: 'Validation failed', details: parsed.error.flatten(), statusCode: 400 } })
+    }
+    const supplier = await SupplierService.create(app.db, request.companyId, parsed.data)
+    return reply.status(201).send(supplier)
+  })
+
+  app.get('/suppliers', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const list = await SupplierService.list(app.db, request.companyId)
+    return reply.send(list)
+  })
+
+  app.get('/suppliers/search', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const { q } = request.query as { q?: string }
+    if (!q) return reply.status(400).send({ error: { message: 'Query parameter q is required', statusCode: 400 } })
+    const results = await SupplierService.search(app.db, request.companyId, q)
+    return reply.send(results)
+  })
+
+  app.get('/suppliers/:id', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const { id } = request.params as { id: string }
+    const supplier = await SupplierService.getById(app.db, request.companyId, id)
+    if (!supplier) return reply.status(404).send({ error: { message: 'Supplier not found', statusCode: 404 } })
+    return reply.send(supplier)
+  })
+
+  app.patch('/suppliers/:id', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const { id } = request.params as { id: string }
+    const parsed = SupplierUpdateSchema.safeParse(request.body)
+    if (!parsed.success) {
+      return reply.status(400).send({ error: { message: 'Validation failed', details: parsed.error.flatten(), statusCode: 400 } })
+    }
+    const supplier = await SupplierService.update(app.db, request.companyId, id, parsed.data)
+    if (!supplier) return reply.status(404).send({ error: { message: 'Supplier not found', statusCode: 404 } })
+    return reply.send(supplier)
+  })
+
+  app.delete('/suppliers/:id', { preHandler: [app.authenticate] }, async (request, reply) => {
+    const { id } = request.params as { id: string }
+    const supplier = await SupplierService.softDelete(app.db, request.companyId, id)
+    if (!supplier) return reply.status(404).send({ error: { message: 'Supplier not found', statusCode: 404 } })
+    return reply.send(supplier)
+  })
+}
diff --git a/packages/backend/src/services/inventory.service.ts b/packages/backend/src/services/inventory.service.ts
new file mode 100644
index 0000000..c289f55
--- /dev/null
+++ b/packages/backend/src/services/inventory.service.ts
@@ -0,0 +1,109 @@
+import { eq, and, ilike } from 'drizzle-orm'
+import type { PostgresJsDatabase } from 'drizzle-orm/postgres-js'
+import { categories, suppliers } from '../db/schema/inventory.js'
+import type {
+  CategoryCreateInput,
+  CategoryUpdateInput,
+  SupplierCreateInput,
+  SupplierUpdateInput,
+} from '@forte/shared/schemas'
+
+export const CategoryService = {
+  async create(db: PostgresJsDatabase, companyId: string, input: CategoryCreateInput) {
+    const [category] = await db
+      .insert(categories)
+      .values({ companyId, ...input })
+      .returning()
+    return category
+  },
+
+  async getById(db: PostgresJsDatabase, companyId: string, id: string) {
+    const [category] = await db
+      .select()
+      .from(categories)
+      .where(and(eq(categories.id, id), eq(categories.companyId, companyId)))
+      .limit(1)
+    return category ?? null
+  },
+
+  async list(db: PostgresJsDatabase, companyId: string) {
+    return db
+      .select()
+      .from(categories)
+      .where(and(eq(categories.companyId, companyId), eq(categories.isActive, true)))
+      .orderBy(categories.sortOrder)
+  },
+
+  async update(db: PostgresJsDatabase, companyId: string, id: string, input: CategoryUpdateInput) {
+    const [category] = await db
+      .update(categories)
+      .set({ ...input, updatedAt: new Date() })
+      .where(and(eq(categories.id, id), eq(categories.companyId, companyId)))
+      .returning()
+    return category ?? null
+  },
+
+  async softDelete(db: PostgresJsDatabase, companyId: string, id: string) {
+    const [category] = await db
+      .update(categories)
+      .set({ isActive: false, updatedAt: new Date() })
+      .where(and(eq(categories.id, id), eq(categories.companyId, companyId)))
+      .returning()
+    return category ?? null
+  },
+}
+
+export const SupplierService = {
+  async create(db: PostgresJsDatabase, companyId: string, input: SupplierCreateInput) {
+    const [supplier] = await db
+      .insert(suppliers)
+      .values({ companyId, ...input })
+      .returning()
+    return supplier
+  },
+
+  async getById(db: PostgresJsDatabase, companyId: string, id: string) {
+    const [supplier] = await db
+      .select()
+      .from(suppliers)
+      .where(and(eq(suppliers.id, id), eq(suppliers.companyId, companyId)))
+      .limit(1)
+    return supplier ?? null
+  },
+
+  async list(db: PostgresJsDatabase, companyId: string) {
+    return db
+      .select()
+      .from(suppliers)
+      .where(and(eq(suppliers.companyId, companyId), eq(suppliers.isActive, true)))
+  },
+
+  async search(db: PostgresJsDatabase, companyId: string, query: string) {
+    const pattern = `%${query}%`
+    return db
+      .select()
+      .from(suppliers)
+      .where(
+        and(eq(suppliers.companyId, companyId), eq(suppliers.isActive, true), ilike(suppliers.name, pattern)),
+      )
+      .limit(50)
+  },
+
+  async update(db: PostgresJsDatabase, companyId: string, id: string, input: SupplierUpdateInput) {
+    const [supplier] = await db
+      .update(suppliers)
+      .set({ ...input, updatedAt: new Date() })
+      .where(and(eq(suppliers.id, id), eq(suppliers.companyId, companyId)))
+      .returning()
+    return supplier ?? null
+  },
+
+  async softDelete(db: PostgresJsDatabase, companyId: string, id: string) {
+    const [supplier] = await db
+      .update(suppliers)
+      .set({ isActive: false, updatedAt: new Date() })
+      .where(and(eq(suppliers.id, id), eq(suppliers.companyId, companyId)))
+      .returning()
+    return supplier ?? null
+  },
+}
diff --git a/packages/shared/src/schemas/index.ts b/packages/shared/src/schemas/index.ts
index 9a4078e..5fe4a0a 100644
--- a/packages/shared/src/schemas/index.ts
+++ b/packages/shared/src/schemas/index.ts
@@ -15,3 +15,16 @@ export type {
   MemberCreateInput,
   MemberUpdateInput,
 } from './account.schema.js'
+
+export {
+  CategoryCreateSchema,
+  CategoryUpdateSchema,
+  SupplierCreateSchema,
+  SupplierUpdateSchema,
+} from './inventory.schema.js'
+export type {
+  CategoryCreateInput,
+  CategoryUpdateInput,
+  SupplierCreateInput,
+  SupplierUpdateInput,
+} from './inventory.schema.js'
diff --git a/packages/shared/src/schemas/inventory.schema.ts b/packages/shared/src/schemas/inventory.schema.ts
new file mode 100644
index 0000000..a634ed5
--- /dev/null
+++ b/packages/shared/src/schemas/inventory.schema.ts
@@ -0,0 +1,27 @@
+import { z } from 'zod'
+
+export const CategoryCreateSchema = z.object({
+  name: z.string().min(1).max(255),
+  description: z.string().optional(),
+  parentId: z.string().uuid().optional(),
+  sortOrder: z.number().int().default(0),
+})
+export type CategoryCreateInput = z.infer<typeof CategoryCreateSchema>
+
+export const CategoryUpdateSchema = CategoryCreateSchema.partial()
+export type CategoryUpdateInput = z.infer<typeof CategoryUpdateSchema>
+
+export const SupplierCreateSchema = z.object({
+  name: z.string().min(1).max(255),
+  contactName: z.string().max(255).optional(),
+  email: z.string().email().optional(),
+  phone: z.string().max(50).optional(),
+  website: z.string().max(255).optional(),
+  accountNumber: z.string().max(100).optional(),
+  paymentTerms: z.string().max(100).optional(),
+  notes: z.string().optional(),
+})
+export type SupplierCreateInput = z.infer<typeof SupplierCreateSchema>
+
+export const SupplierUpdateSchema = SupplierCreateSchema.partial()
+export type SupplierUpdateInput = z.infer<typeof SupplierUpdateSchema>