The 'inventory workflow system' leverages temporal.io to enhance inventory management and streamline e-commerce processes with features like one-click purchasing and real-time inventory control. It integrates a next.js frontend with a temporal backend to create scalable, fault-tolerant web applications, utilizing various implementation strategies such as containerization and cloud deployment. The system addresses challenges such as transactional integrity and asynchronous operations by treating workflows as transactions and ensuring smooth orchestration of tasks.