1. Put someone in charge of inventory management.
2. Pick the right inventory management software.
3. Do regular inventory audits.

1. Reduce the number of times a human has to touch a product and footsteps a person must take to fulfill the order. Cutting down these things reduces the amount of time each worker needs to pick and pack each order. This lets you schedule fewer workers, or simply get much more productivity out of the same workers.

2. Focus on the things you can change.
For example, maybe you’re paying more for workers because of the labor market near your warehouse. You can’t change the labor market, but you can rearrange your warehouse to require fewer workers.

3. Prioritize optimization for fast-moving products.
Sort your inventory by picking size (pallet, case, or piece). Then classify the products by how fast they sell — fast, medium, slow, and very slow. Did you know that 80% of your sales probably come from your top-selling 20% of SKUs?
If changes seem overwhelming or are slow going, concentrate on making the changes that affect your top-selling 20%.