In-and-Out Inc. is a newcomer in the online fashion retail business. The company has become very well-known thanks to its innovative styles and the support of several social media influencers, and it has extremely high growth rates in sales. Currently, however, growth is reaching its limits, as In-and-Out is having increasing problems with faulty deliveries and excessively long delivery times. Upset customers begin to turn away which threatens the success of the young firm. The COO of the firm has identified the problem in the warehouses of In-and-Out Inc. Currently, the company employs an army of unskilled workers who manually stow and pick the clothes, pack them into parcels, manually label addresses and hand them over to a logistics company for delivery.

Explain the problem of In-and-Out Inc. and make a recommendation for optimizing its warehousing activities.