In the vast and complex world of e-commerce, there are many challenges that retailers face when it comes to shipping and logistics. One area that has gone largely unaddressed until now is the issue of compliance with packing instructions for shipments. Co-founders Elle Smyth and Sarah Hamer of 6-month-old RetailReady have identified this overlooked problem and are building a tablet app to replace paper warehouse manuals, aiming to reduce the number of retail compliance losses that shippers incur annually.
A Problem Worth $40 Billion
According to Smyth, the founders of RetailReady believe they have found an area of the warehouse/shipping industry that costs retail brands some $40 billion a year. This staggering figure highlights just how significant this issue is and how much potential there is for innovation in this space.
From YC Winter 2024 Cohort to Founders
Smyth and Hamer met while working together at supply chain unicorn startup, Stord. They came up with the idea for RetailReady after realizing the need for a more efficient way of documenting packing instructions. "We met each other and bonded over our love for the supply chain industry," Smyth told TechCrunch. "We call it an engineer’s playground. There is no lack of problems to be solved there."
YC Connection and Founder Market Fit
After getting accepted into Y Combinator, Smyth and Hamer left Stord and began working on their startup idea in earnest. They are confident that they have extreme founder market fit, meaning that they have a deep understanding of the problem they’re trying to solve.
The Tablet Application: A Digital Solution
RetailReady’s tablet application replaces paper warehouse manuals with a digital version that gives workers a directed workflow on how to pack an order correctly. In a feature currently in development, the app will use computer vision to look at the orders as they are being packed to verify compliance.
"We’re really excited about continuing from the product side, including our computer vision module where we will begin photo capturing the workers’ process so we can actually validate whether or not they did it correctly," Smyth said.
Computer Vision and AI Technology
The company uses a double batch of AI technology to help reduce improperly shipped items. Large language models ingest the shipping requirements manuals, while computer vision is used to validate compliance.
A Niche in a Huge Market
The supply chain and logistics industry is a massive market, with many legacy and startup companies vying for a piece of it. However, RetailReady is focusing on a specific niche within this space – warehouse workers referencing ‘phone book-sized’ manuals of how to ship items to retailers.
Chargebacks: A Significant Problem
If shipping/warehouse workers don’t pack these items correctly, retailers will charge the brands fees, known as chargebacks. "Brands will end up getting 3% off their invoice, on average, taken off just because these requirements are not met," Smyth said.
Onboarding Customers and Growth Figures
Although Smyth was mum on discussing growth figures, she did mention that six months after launching the company, RetailReady is currently onboarding six customers. The company works with brands, warehouses, and retailers to provide a more efficient way of documenting packing instructions.
Funding and Future Plans
RetailReady has secured funding from investors and is planning to continue growing its customer base. With its innovative solution and strong team, the company is poised to make a significant impact in the warehouse shipping industry.
Conclusion
The $40 billion compliance market is a significant problem that RetailReady is tackling with its innovative tablet application. By leveraging AI technology and computer vision, the company aims to reduce the number of retail compliance losses that shippers incur annually. With its strong team and growing customer base, RetailReady is well-positioned to make a significant impact in this space.
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