Based on this Beyond Fulfillment podcast episode.

In 2014, James Malley and Pat Powers were building parcel shipping apps for retailers and noticed a major problem. Shippers were wasting money on Dimensional Weight Pricing from major carriers.

UPS and FedEx started charging based on package size instead of just weight, and suddenly, bad packing decisions were destroying businesses' margins. Later, as rates climbed and capacity became scarce during the pandemic, the pain increased.

Customers asked James and Pat to find cartonization software tto fix the problem. But after searching, they came up empty. So, they did what any good problem-solvers would do—they built their own.

At first, it was a passion project. But as word spread, more companies wanted in. By 2021, the pandemic put even more pressure on supply chains, major shippers turned to James and Pat and their maturing solution for help. That was the moment Paccurate became more than just an idea. It became the go-to solution for smarter, cost-effective packing.

Identifying a Gap in Parcel Shipping

James, CEO and co-founder of Paccurate, has always been fascinated by technology, especially in the supply chain space. Pat, Paccurate’s CTO and co-founder, is driven by the impact of their technology when applied well.

At first, James and Pat assumed most shippers had cartonization figured out, but, they quickly realized it had been neglected for years, improving slowly and failing.

Most shippers rely on basic liquid-fill cartonization built into their Warehouse Management System (WMS). However, almost every shipper has unique packing requirements that don’t work with a one-size-fits-all approach. WMS providers often include cartonization baked into their platform to “check the box”, but it’s not their core focus. Building a flexible solution that works for every scenario didn't seem practical, so they kept their cartonization simple. If shippers need anything beyond that, they have to pay for customizations.

Solving the Problem

Pat, an engineer, likes to rethink problems from the ground up. Instead of using an open-source algorithm to improve cartonization, he and James took a completely different approach from how WMSs handle it.

Traditional WMS cartonization is simple: it jams the most items it can fit into a box and runs a couple of simplistic checks to guess if it obeys the laws of physics. But James and Pat knew that if a shipper's goal is to reduce costs, volume is only part of the equation. Carriers influence costs by incentivizing either splitting shipments into multiple boxes or consolidating them into fewer, depending on factors like destination, service type, and weight. These incentives are embedded in a shipper’s rate card.

It took about four years of Pat’s focus to develop an advanced model that could process all these complex cost structures efficiently and quickly enough to make packing decisions viable for use in a real operation.

Because James and Pat had broad access to parcel shippers and heard their challenges firsthand, Paccurate was able to be developed with both the freedom to avoid weaknesses of earlier solutions in the industry while remaining in tune with the realities of their users — not stuck in an ivory tower.

The Shift to Smarter Packing

During the pandemic, fulfillment costs skyrocketed. Carrier rates and surcharges climbed, and supply chain disruptions made corrugated boxes more expensive. Simultaneously, e-commerce demand exploded as a new generation of consumers took over. These shoppers weren’t shy about calling out problems like damaged goods and wasteful packaging.

With rising costs, increased demand, and growing customer expectations, shippers had to take a step back and rethink their packing strategies.

In 2021, James and Pat decided to focus on growing Paccurate beyond the two of them. Shippers quickly took notice of their expanding footprint, turning to them for a better way to manage packing costs and keep up with the shifting supply chain landscape.

Today, Paccurate has evolved into more than just a cartonization tool. It is a comprehensive platform that helps shippers pack smarter at every stage. Instead of treating packing as a one-and-done calculation, Paccurate makes it a continuous process of executing, measuring, and monitoring for ongoing improvement.

Execute: PacAPI provides precise 3D packing instructions, optimizing for cost by factoring in materials, labor, and even hidden breakpoints in carrier rates.

Measure: PacSimulate® enables shippers to analyze shipment data and model different packing strategies, identifying the ideal mix of cartons and mailers for their operation.

Monitor: PacHealth® introduces a "perfect pack" benchmark, delivering real-time insights that drive efficiency, compliance, and better packing performance over time.

By bringing these tools together in one platform, Paccurate helps shippers take control of their packing costs, not just for a single order but across their entire fulfillment operation. With Paccurate, companies across the U.S. are cutting material and transportation costs while making their operations more sustainable.

A New Chapter of Growth

For customers, Paccurate delivers both ROI and a measurable environmental impact. It helps reduce corrugated waste, optimizes truckloads, and cuts unnecessary shipments. As a mission-driven company, Paccurate is committed not just to making the solution work but also to ensuring customers love using it. They take a hands-on approach. That level of dedication is why their early customers, like Lionel Trains, still rely on Paccurate today.

The Mission

Paccurate’s mission is to make the supply chain less wasteful through spatial efficiency. To further that mission, Paccurate has successfully raised three venture capital rounds: a Pre-Seed round in 2022, a Seed round in 2023, and most recently, a Series A. Reflecting on the journey, James shared, “I am extremely grateful for the investors and board members who believe in our mission and actively support our growth.” Their backing has helped Paccurate scale its impact, giving more businesses the tools to ship smarter and more sustainably.

With a team of 23 employees, Paccurate continues to expand while staying true to its mission. Looking ahead, they are focused on strengthening partnerships and doubling down on what works, approaching growth with a strategic and methodical mindset.

What is James’s secret to scaling the company? “Hire people who are smarter than me.” – James