The founders of RetailReady, a 6-month-old startup and recent graduates of the YC winter 2024 cohort, have identified a significant issue in the warehouse and shipping industry that costs retail brands approximately $40 billion annually.

They are developing a tablet app to replace traditional paper warehouse manuals that outline packing instructions. Co-founders Elle Smyth and Sarah Hamer conceived the idea while working together at Stord, a supply chain unicorn startup.

Smyth stated, "We discovered our shared passion for the supply chain industry and consider it an entrepreneur's playground with countless problems waiting to be solved."

RetailReady is focused on the $40 billion compliance market to reduce retail compliance losses caused by improperly shipped packages. The company utilizes AI technology, including large language models to process shipping requirements manuals and computer vision to ensure compliance.

The supply chain and logistics industry is vast, with numerous legacy and startup companies vying for market share. RetailReady differentiates itself by targeting a specific niche, providing digital instructions for warehouse workers on how to correctly pack orders for retailers like Target and Walmart.

If items are not packed correctly, retailers may impose chargebacks on brands, resulting in a 3% deduction from their invoices. RetailReady's digital app aims to prevent these chargebacks by offering directed workflows for packing orders and utilizing computer vision for compliance verification.

Despite not disclosing specific growth metrics, Smyth mentioned that six months after launch, RetailReady is onboard six customers, including brands, warehouses, and retailers.

The founders secured $3.3 million in seed funding to expand their team, enhance product development, and focus on technological advancements. The round was led by Wischoff Ventures and supported by investors such as Y Combinator, 640 Oxford, Lombardstreet Ventures, Duke Capital Partners, and a group of angel investors.