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By: Maggie M. Barnett, Esq., COO at ShipHeroShortages and bottlenecks have battered global supply chains throughout 2020 and 2021. The COVID-19 outbreak and other unexpected events caused critical suppliers worldwide to suddenly have short supplies, leaving companies reaching for alternate sources of supply that often had dramatic price increases. It has become more evident than ever that companies, manufacturers, and retailers need to build resilience against the uncertainty of the supply chain and the events that can upend it.To better prepare for supply chain challenges, company leaders and supply chain managers need to develop a plan for how to avoid supply constraints. Flexibility also needs to be considered so that when emergencies do happen, the company can adapt to unexpected changes, whether short-term or long-term. One of the first steps to creating resilience against shortages and other supply chain issues is understanding what causes these disruptions.
Supply chain disruption is when a crisis or unexpected change causes problems with the normal flow of goods between entities all along the supply chain. The coronavirus outbreak is an excellent example of a crisis that caused supply chain disruption, such as when personal protective equipment became inaccessible for many hospitals in North America. Other examples of changes that can cause supply chain disruption include dramatic changes in consumer demand, tariffs, or natural disasters such as earthquakes.
2021 has been a large scale example of how supply chain disruption can upend entire industries. Among a handful of other complexities such as the Suez Canal blockage, COVID-19 caused immense constraints on raw material supplies, semiconductors, and other commodities. Understanding today's issues and their effects helps us to have better visibility of future supply chain disruptions.
COVID-19 had dramatic effects on global companies. The beginning of the pandemic saw consumers panic-buying in bulk. Inventory levels couldn't keep up with the sudden increase in demand for essential products such as toilet paper, food, PPE, and water. Large-scale workforce safety measures inevitably increased lead times, and outbreaks of the virus slowed companies even further.
The Suez Canal sees around 13% of the volume of global trade, as it is a gateway for expedited transportation between the Atlantic Ocean and the Western Pacific and Indian Oceans. The nearest alternative route is navigating around the Cape of Good Hope in South Africa, eight or more days of extra travel. On March 23rd, a huge container ship called The Ever Given got lodged diagonally in the canal due to high-speed winds and was stuck there for six days.Over 350 ships were stuck finding alternate routes or waiting during the Suez Canal blockage, leading to a ripple effect throughout the supply chain. Inventory shortages, loss of perishable goods, and a domino effect of delays caused a supply management nightmare. The waves from this event continued to be felt months after the event as warehouses and shipping companies got set significantly behind.
Auto dealerships are facing shortages as they try to replenish their inventory from the pandemic. Simultaneously, car sales are up 48% over their lowest point in the pandemic. Retailers' inventory to sales ratio is only 1.07, and inventories for retailers have shrunk 5% YoY. Due to tight capacity across the global supply chain and high demand, companies have had to extend lead times for inventory planning. Not helping the matter is the shortage of semiconductors that is affecting car production levels.
Lead retailers such as Walmart have also had to lengthen lead times as the inventory to sales ratio dropped to 1.23 in March 2021, according to the Census Bureau, the lowest ever recorded.
The pandemic impacted all supply chain members and their ties simultaneously in a way we have never seen before. Border closures, supply market lockdowns, labor shortages, and shipment interruptions caused problems across all supply tiers. At the beginning of the pandemic in March of 2020, 94% of Fortune 1000 companies already saw supply chain disruptions.Many factors caused a critical shortage of hospital PPE, including the fact that at the time, more than 70% of respiratory protection supplies used in the United States were made in China. Manufacturers pivoted to help production, but demand worldwide was extreme. The US government stepped in to help, though federal policy like tariffs also added further disruption. Simultaneously, the general public was panic-buying resources such as PPE, grocery items, sanitizing agents, and household items like toilet paper. The reliance on just-in-time ordering and instant warehousing meant that average consumers could not reliably purchase essential items.
There are dozens of reasons why a supply chain can be disrupted. Here are some of the most common reasons.
COVID-19 is a prime example of pandemic-related supply chain disruption. These large-scale events can cause a ripple effect in the global supply chain that is extremely hard to recover from due to the worldwide impact.
Hurricanes, fires, and floods all can cause supply chain disruption. Hurricane Katrina is a great case study, where large-scale power outages and the inability to use transportation routes caused significant supply issues.
Around the same time as the Suez Canal incident, a COVID-19 outbreak shut down one of China's busiest ports, the Yantian Port. Incidents like the canal blockage and the temporary shutdown at Yantian can disrupt entire supply chains for months.
Recalls of incorrectly made or unsafe products can sometimes be isolated incidents but also can cause much larger ripples. For example, if a large supplier recalls a part used by many manufacturers, it could cause a delay across many parts of the sector.
In May, a cyberattack caused the Colonial Pipeline to shut down its network. The pipeline sources close to half of the East Coast's fuel, about 2.5 million barrels per day of gas. Cyberattacks are growing more common, and many crucial parts of the supply chain are incredibly vulnerable to these threats.
Tariffs and trade wars can cause significant issues for manufacturers and suppliers. We have seen this with the US trade with China throughout 2021 and continuing shortages because of these policies.
If necessary materials are affected by supply chain disruption, you need to have an alternate action plan. Whether having backup suppliers, an emergency budget, or a stockpile of these essential items, you will already be more resilient by coming up with a strategy.
Stockpiling essential items for your company can help you prepare for any situation. Order ahead a handful of months so that your business will have plenty of time to enact its supply chain emergency plan before running out.
By looking at where your risk is within your supply chain, you can help your supply chain leaders know where they need to create more flexibility. By predicting potential pain points before they become problems, you can encourage trade agility and find alternatives.
If your leading suppliers suddenly lost the capability to get you your goods, what would you do? Identifying backup suppliers for all of your goods and services categories can help provide resilience against issues in the future.
When picking suppliers, try to pick those in different locations that ship to you through various avenues. When you diversify your supply base, you ensure that while one supplier may be unable to get to you, the others should still be functional.
Collaborating with a supply chain logistics expert can help you find alternatives in case of an emergency. Professional logistics leaders also can help you find ways to make your supply chain more robust and resilient. 3PL can also help you grow your company's ability to have flexibility in times when some areas or resources may be unavailable.
Technology is adapting to help try to prevent these widespread supply chain issues in the future. Implementing some of these AI-driven risk evaluation tools can provide ways to predict and combat cyber threats. Automation and AI often have a better ability to find potential shortages before most suppliers even know they exist.
Clearly explain to your customer base what is happening within the industry and what steps you are taking to resolve the issue. By keeping an open line of honest communication, they will be more accepting and understanding of your predicament.
Decide which parts of the supply chain are the most vital to getting your product out. Once you have identified the most critical components of your supply chain, find alternative suppliers for those items as soon as possible.
Calculate how much inventory you have left and how long it will last you. Evaluating where you are at with your stock will help you figure out the urgency with which you need a new supply line.
If customer behavior is causing part of your disruption, start assessing buyer behavior. By seeing how your customer base is purchasing, you can better react to their needs and shift in needed areas.
In the case of an event like COVID-19 or a natural disaster, consider the safety of your suppliers and employees. Ensuring the safety of all involved people and parties should be paramount. Consider staggered shifts, remote work, and alternative schedules to guarantee a safe working environment as much as possible.
Not every item you are receiving during a supply chain disruption is as crucial as the others. Just as you identified things that are the most essential to your company's function, also provide slowdown and flexibilities with those that are not. Communicating this information to your suppliers can help you get what you need more readily and not clog them up with less important items.
Adjust your overhead so you can cover and financial impact or issues with your cash flow. Determine what areas will suffer the most, and find ways to cover these losses in a way that is as financially healthy as possible.
Supply chain disruption is inevitable to some degree. The best thing your company can do is encourage visibility and resilience to ensure that if something does happen, you can combat it in a way that is healthy financially and for your workforce. Preparation and plans in case of emergency go a long way in protecting your company from disruption and can buy you precious time to implement alternatives and backup plans.Examine your supply chain, and consider ways that it may be affected in the future, and how you can create robust practices that will help soften the blow of any issues.If you’re new to ShipHero Fulfillment, please schedule a meeting today with our experts to learn more about how we can help you get your orders picked, packed, and delivered with our fulfillment service. No setup fees - simply pay as you go. ShipHero works to ensure that organizations invest in the solutions that match their needs, to improve productivity, revenue, and success.Click HERE to Schedule a Meeting TodayMaggie M. Barnett, Esq., COOShipHeroAbout the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.Follow Maggie on Twitter&LinkedIn.
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TikTok Shop is discontinuing "seller shipping" on February 25, 2026, a move that will halt fulfillment for any 3PL using non-integrated legacy technology. ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, allowing you to generate compliant labels and avoid a total operational lockout. By migrating to ShipHero before the deadline, 3PLs can eliminate onboarding fees and ensure their clients’ businesses remain active and profitable.
Starting February 25, 2026, TikTok Shop is officially discontinuing "seller shipping" (also known as "bring your own label") for all U.S. local sellers.
This means your clients can no longer use their own carrier accounts for TikTok orders.
As their 3PL, you will be unable to generate labels unless your WMS is directly integrated with TikTok’s new ecosystem. To keep your clients' businesses running, you must transition them to TikTok Shop Logistics Services through a verified partner.
ShipHero can keep your 3PL orders flowing from February 25 onwards.
If you are running your warehouse on legacy systems, you are at risk of a complete TikTok Shop lockout. Your fulfillment—and your revenue—will simply stop that day.
TikTok's latest policy creates a massive bottleneck for 3PLs using legacy technology.
To help 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.
There are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. Most legacy WMS providers are not currently approved. To avoid a total operational blackout for your clients, you must move to a verified partner like ShipHero.
No. Starting February 25, TikTok will discontinue seller shipping. All shipping must go through TikTok Shop Logistics Services.
No. You can still manage fulfillment from your own 3PL warehouse using ShipHero’s direct integration, which pulls the required TikTok labels and logic directly into your existing workflow.
You will lose the ability to generate shipping labels for any TikTok Shop order. This will result in immediate fulfillment backlogs, client dissatisfaction, and potential loss of contracts.
Yes. ShipHero is the only U.S. based WMS currently supporting these requirements, allowing 3PLs to continue shipping without interruption.
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TikTok Shop is introducing mandatory logistics changes that will stop fulfillment for unprepared sellers on February 25, 2026.
ShipHero's WMS is fully integrated and approved to support TikTok Shop’s new logistics requirements, ensuring your orders keep moving without interruption. By switching to ShipHero before the deadline, brands can maintain compliance and eliminate onboarding fees during this transition. Here’s everything brands need to know to continue fulfilling orders.
Starting February 25, 2026, TikTok Shop will discontinue "seller shipping" for all U.S. local sellers. This means you can no longer use your own carrier accounts to generate labels for TikTok orders. To stay compliant and keep selling, brands must transition to TikTok Shop Logistics Services.
Relying on legacy systems like Extensiv, Deposco, or Logiwa puts your business at risk of account suspension and shipping delays that kill customer loyalty.
If your current WMS or 3PL is not integrated with TikTok Shop Logistics Services, you will face a total fulfillment blackout on that date. Failure to adapt to these changes risks shipping delays that kill customer loyalty and can lead to account suspension on the platform.
For brands onboarding on or after February 9, 2026, these restrictions are already in effect.
ShipHero has done the due diligence and has built a direct integration to ensure that merchants can fulfill TikTok Shop orders themselves while remaining fully compliant with TikTok’s new label requirements.
To help brands and 3PLs transition quickly and stay compliant, we are waiving all onboarding fees for new customers who join ShipHero before February 25.
Currently, there are only 6 approved ERP/WMS providers globally that meet TikTok’s new integration standards. ShipHero WMS is on that list. If you are using legacy providers like Extensiv, Deposco, or Logiwa, they are not currently approved to support these specific TikTok Shop requirements. To avoid a total operational blackout, you must move to a verified partner like ShipHero before the deadline.
No. Starting February 25, TikTok will discontinue seller shipping. You must use TikTok Shop Logistics Services.
You can use Fulfilled by TikTok (FBT) to store and ship items through their network, switch to one of the six approved ERP/WMS systems, or use ShipHero's direct integration.
You must use TikTok Shop Logistics Services, but with ShipHero, you can still manage the fulfillment from your own warehouse using TikTok’s required labels and logic.
This connection type will not support the new label requirements. You must switch to a direct TikTok Shop connection within ShipHero to avoid fulfillment interruptions.
Yes. ShipHero is currently the only U.S. based WMS that supports these requirements, allowing our customers to continue shipping without interruption.
Imagine running a warehouse where orders are picked quickly, inventory is accurate, and all operations run smoothly without any errors or delays. Thanks to Artificial Intelligence, this can now become a reality with ease.
AI is transforming warehouse management by enhancing efficiency, intelligence, and the ability to meet the rapid demands of today’s eCommerce-driven market.
ShipHero is pioneering this revolution with its AI-powered warehouse solutions, setting new industry benchmarks. This article explores ShipHero’s AI Picking feature, highlighting how it’s transforming warehouse management and enhancing operational efficiency.
The integration of AI technologies, including machine learning, robotics, and predictive analytics, is revolutionizing warehouse operations, driving significant improvements in efficiency, accuracy, and overall performance. These innovations are optimizing processes across various areas, from inventory management to order fulfillment. Below are the key benefits of AI in warehouse management.
A combination of AI technologies is shaping smarter warehouse systems to help revolutionize warehouse management.
ShipHero has taken AI integration to the next level with its AI Picking feature, designed to significantly improve warehouse efficiency. This feature automates the picking process, reducing the reliance on manual labor and enhancing productivity in ways that were once thought impossible.
Let’s dive deeper into how ShipHero’s AI Picking works and the advantages it offers.
AI Picking optimizes warehouse operations in two key ways:
The AI Picking feature delivers a wide range of benefits:
The transformative power of AI extends far beyond just picking. AI is also revolutionizing other aspects of warehouse management, driving improvements in operational efficiency, inventory management, and safety.
AI automates tasks, reducing errors and increasing speed. Automated sorting and real-time inventory tracking ensure accuracy, while real-time monitoring helps managers adapt and ensure timely deliveries.
AI plays a vital role in maintaining accurate inventory levels. By leveraging predictive analytics, AI can forecast demand and optimize stock levels, helping warehouses avoid both stockouts and overstock situations. This leads to better inventory management and fewer disruptions in supply chains.
AI-driven systems can monitor warehouse conditions to ensure safety and compliance with industry regulations. These systems can analyze warehouse data and predict potential hazards before they occur, proactively reducing risks and ensuring a safer working environment.
AI technologies are playing a transformative role in the supply chain and logistics sectors by improving efficiency, reducing costs, and enhancing decision-making.
These intelligent systems effortlessly manage supply chain processes by using data to optimize operations, predict trends, and automate routine tasks. This ultimately reshapes everything, from how goods are moved to stored and delivered.
The future of warehouse management looks promising with greater automation and efficiency, but future warehouse digitization brings challenges, such as high upfront costs and the need for skilled personnel.
AI-powered drones, autonomous robots, and IoT integration are smart warehouse technologies that are revolutionizing warehouse operations. Drones will deliver goods quickly, while robots automate sorting and transportation, thereby reducing the need for manual labor.
IoT and AI integration will enable real-time monitoring and optimization of operations. Smart technology in warehouses is leading to fully automated systems that are faster, scalable, and need minimal human input.
While AI offers immense benefits, businesses must also consider certain challenges. High initial investments in AI technology, data security concerns, and the need for skilled personnel are just a few of the hurdles that must be addressed.
However, with a strategic approach, companies can eliminate the challenges and embrace AI’s full potential to boost accuracy in picking and improve overall warehouse operations.
AI minimizes error by automating tasks like inventory tracking, order picking, and sorting, ensuring greater accuracy and efficiency.
Yes, AI-driven predictive analytics can predict demand, track inventory levels, and improve supply chain efficiency by forecasting needs with greater accuracy to help businesses stay ahead of trends and market fluctuations.
AI solutions are becoming more cost-effective thanks to cloud-based services and subscription pricing models. These options make AI technology more accessible to small businesses, allowing them to take advantage of its benefits without large upfront costs.
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