Better approach for a WordPress Inventory

In general, categories are tied to posts only (not custom types). This is built-in taxonomy. Though there is another experience.

My approach is to create custom post types and custom taxonomies. That’s up to you how to organize the catalog. CPT for company and taxonomy for product family, or otherwise:

/makita/drills/product_1
/makita/drills/product_2
/bosch/drills/product_1
/bosch/drills/product_1

or

/drills/makita/product_1
/drills/makita/product_2
/drills/bosch/product_1
/drills/bosch/product_2

Both CPTs and taxonomies can be hierarchical, so you’ll get “subcategories” in any way:

/drills/cordless/makita/product_1

or

makita/drills/cordless/product_1

or

/drills/makita/cordless/product_1

Note, you have to plan your theme template hierarchy first to avoid difficulties in future.