The founders of 6-month-old RetailReady, recent grads of the YC winter 2024 cohort, have discovered an untapped sector within the warehouse and shipping industry that has resulted in a staggering annual loss of $40 billion for retail brands, according to their estimates.
After working together at Stord, a supply chain unicorn startup, co-founders Elle Smyth and Sarah Hamer conceived the idea for a tablet app that could replace the laborious task of manual documentation in warehouses. They were soon accepted into the prestigious Y Combinator program and left Stord to pursue their startup idea, confident in their extreme founder market fit.
“We met each other and bonded over our love for the supply chain industry,” Smyth shared with TechCrunch. “We call it an engineer’s playground. There is no lack of problems to be solved there.”
RetailReady’s tablet application aims to streamline the compliance process for retail brands, ultimately reducing the number of costly errors made during shipping. Smyth explained that the company utilizes a combination of AI technology, including large language models and computer vision, to ensure packages are shipped correctly and in compliance with regulations.
As the demand for online shopping has increased, the supply chain and logistics industry has become a massive market for both legacy and startup companies. RetailReady, however, has found their niche in the market. Warehouse workers are often burdened with referencing bulky manuals that outline specific instructions for shipping to various retailers, such as Target and Walmart.
“They’re like phone book-sized manuals directing you how to not just put things in a box, but compliantly pack that order,” Smyth explained.
If these instructions are not followed precisely, retailers may charge brands hefty fees, known as chargebacks. Smyth revealed that, on average, brands can lose up to 3% of their invoice due to non-compliant shipments.
RetailReady’s solution is a digital version of these time-consuming manuals, providing workers with a directed workflow for packing orders. In the works is a feature that utilizes computer vision to oversee the packing process and verify compliance in real-time.
“We’re really excited about continuing to develop our computer vision module, where we will capture photos of the workers’ process to validate their compliance,” Smyth shared.
Since launching the company six months ago, Smyth and Hamer have successfully onboarded six customers and are continually gaining more traction. RetailReady works closely with brands, warehouses, and retailers to ensure smooth and compliant shipments.
The founders recently secured $3.3 million in seed funding, which they plan to use for hiring new employees and further developing their product and technology.
The round was led by Wischoff Ventures and joined by Y Combinator, 640 Oxford, Lombardstreet Ventures, Duke Capital Partners, and a group of notable angel investors including Cargado co-founder and CEO Matt Silver, Stord co-founder and CTO Jacob Boudreau, and Scale Angels Fund.
