A $40 Billion Opportunity
The founders of 6-month-old RetailReady, recent graduates of the YC winter 2024 cohort, have identified an overlooked area in the warehouse/shipping industry that costs retail brands a staggering $40 billion annually. Elle Smyth and Sarah Hamer, co-founders of RetailReady, believe they have found a solution to this problem by developing a tablet app that replaces paper warehouse manuals that document packing instructions.
A Chance Encounter
Smyth and Hamer met while working together at supply chain unicorn startup, Stord. Their shared passion for the supply chain industry sparked a collaboration that would eventually lead to the creation of RetailReady. "We 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."
From Stord to RetailReady
After getting accepted into Y Combinator, Smyth and Hamer left Stord to work on their startup idea in earnest. They were confident in their decision, citing "extreme founder market fit." This confidence was evident as they began to develop a solution to the problem of incorrectly shipped packages.
The Problem: Inefficient Shipping
Retailers charge brands fees, known as chargebacks, when shipping/warehouse workers don’t pack items correctly. These fees can range from 1% to 5% of the invoice value. Smyth estimated that on average, brands lose around 3% of their invoices due to these requirements not being met.
The Solution: RetailReady
RetailReady’s tablet application replaces paper warehouse manuals with a digital version that provides workers with a directed workflow on how to pack an order correctly. The app uses computer vision to verify compliance by taking photos of the orders as they are being packed. This feature is currently in development, but Smyth expressed excitement about its potential.
"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.
Onboarding and Growth
Six months after launching the company, RetailReady is currently onboarding six customers. The company works with brands, warehouses, and retailers to provide a solution that addresses the problem of incorrectly shipped packages. While Smyth was mum on discussing growth figures, she emphasized the importance of focusing on product and technology development.
Funding and Future Plans
RetailReady raised $3.3 million in seed funding from Wischoff Ventures, Y Combinator, 640 Oxford, Lombardstreet Ventures, Duke Capital Partners, and a group of angel investors, including Cargado co-founder and CEO Matt Silver, Stord co-founder and CTO Jacob Boudreau, and Scale Angels Fund. The funds will be used to hire additional employees and focus on product and technology development.
Conclusion
RetailReady’s tablet app has the potential to revolutionize the warehouse/shipping industry by reducing the number of incorrectly shipped packages. With a strong team and significant funding, RetailReady is poised to make a significant impact in the supply chain and logistics industry.
The Impact of Inefficient Shipping
Inefficient shipping can have far-reaching consequences for retailers and brands alike. Incorrectly packed items can result in chargebacks, which can range from 1% to 5% of the invoice value. This can add up quickly, resulting in significant losses for companies.
Why RetailReady is a Solution Worth Considering
RetailReady’s tablet app offers a solution to the problem of inefficient shipping by providing workers with a directed workflow on how to pack an order correctly. The app uses computer vision to verify compliance, ensuring that packages are packed accurately and efficiently.
The Benefits of RetailReady’s Tablet App
- Reduces chargebacks and associated losses
- Improves efficiency and accuracy in packing orders
- Provides a digital solution for warehouse manuals
- Enables real-time verification of compliance using computer vision
Conclusion
RetailReady’s tablet app has the potential to revolutionize the warehouse/shipping industry by reducing the number of incorrectly shipped packages. With a strong team, significant funding, and a solution that addresses a major problem in the supply chain and logistics industry, RetailReady is poised to make a significant impact.
Related News
- Raspberry AI raises $24M from a16z to accelerate fashion design
- The first AI chip startup to go public in 2025 will be Blaize
- A 24-year-old who exited his first company to Coinbase, raises $3M for his next venture
Subscribe to TechCrunch’s Newsletters
Stay up-to-date with the latest news and trends in the tech industry by subscribing to TechCrunch’s newsletters. Choose from a variety of topics, including:
- TechCrunch Daily News: Get the best of TechCrunch’s coverage every weekday and Sunday.
- TechCrunch AI: Stay ahead of the curve on the latest news in artificial intelligence.
- TechCrunch Space: Explore the latest advances in aerospace.
Subscribe now and receive access to exclusive content, expert analysis, and breaking news stories.