Even though Dune: Part 2 has been in theaters for a few short weeks, it’s global box office haul is nearing $500 million as of this writing. The movie’s epic, creative visuals and impressive storyline are like no other, inspiring audiences to freely interpret its multi-faceted layers. As such, it’s not hard to notice the movie’s thought-provoking exploration of resource management, supply chain chokepoints, the consequences of our actions and how to overcome them with the right mindset.
The spice must flow
You might be wondering what the whole deal with this spice is and what it has to do with interstellar economics. Put simply, in the Dune universe the “spice” is the most sought-after resource to ensure the stability of the entire economy, political power, and social structure, and only found on the desert planet of Arrakis.
Harvested on the desert planet and transported across vast distances, Dune’s spice involves an intricate network of supply chains. Bringing this back to the real world, the uninterrupted flow of goods and materials is essential to eliminate the disruption of supply chain issues. Transparency plays a crucial role.
Involving all the stakeholders in the transaction process by having access to up-to-date information and real-time updates regarding inventory levels, production schedules, and logistics, they can make informed decisions with high agility.
Imagine sharing data on the inventory level and demand forecasts, suppliers can proactively adjust their production schedules to ensure a steady supply of goods. Or manufacturers who can communicate the possible delays or issues with production to their customers and allow them to make necessary adjustments to their own operations.
Transparency in supply chain operations while enabling collaboration and communication between the stakeholders builds the most important connection between the customer and businesses: Trust.
Trust is to the supply chain what spice is in Dune universe.
Trust is the lifeblood of the supply chain, as essential as spice is to the Dune universe.
Walking the sandwalk: Adaptation is key to survival
Our main character Paul Atreides adapts to the harsh desert environment by mastering the ‘sandwalk’ to avoid the dangerous sandworms. Because the way to stay alive is through adaptation.
The concept of adapting to the environment and learning new skills to survive in the Dune universe is no different than the world of supply chains. The power of adapting to the dynamic business environment, new technologies, constantly changing consumer expectations, government authority regulations, and unavoidable disruptions requires an agile reflex.
As supply chains become more complex and interconnected, having the right tools and knowledge to navigate challenges and optimize operations is crucial for success.
Back to the movie, although they are frighteningly large and dangerous creatures, by learning the behavior of sandworms, Paul learns to ride them and travels by riding rather than walking in the endless sand. Take this for companies that are hesitant to adopt new technologies or innovations. Instead of avoiding innovations or technologies that companies are hesitant to step into, they can learn how to control them and use those technologies to their advantage.
How to avoid a future like DUNE
The DUNE universe has a futuristic society in an endless, lifeless sea of sand. Even though the movie depicts a dystopia, who can guarantee that the end of the current humanity will not resemble this dystopia in the future?
This year we begin to see new regulations concerning ESG coming into effect -Germany’s Supply Chain Due Diligence Act, the Uyghur Forced Labor Prevention Act in the US, and the new EU Deforestation Regulation. Companies will be required to disclose their carbon footprint and emissions.
And the first place they will look will be their supply chain data.
Let’s admit that supply chains play a major role in emissions and other sustainability issues, which makes them a key area for improvement. Increasing demand for sustainability data kindly encourages decision-makers to analyze their supply chains for opportunities to aim for greener business models.
Suppliers that fail to meet ESG regulations may find themselves losing business as customers seek out more sustainable options.
The ability to adapt to new rules, emerging laws, evolving customer expectations, and increasing globalization are all key factors in determining risk resilience. Companies that are able to effectively navigate challenges and position themselves to adapt to changes gain a competitive edge in the marketplace. As the former ruler of Arrakis said, “He who controls the spice, controls the universe."
To learn more about how to get on the path to a Risk Resilient and Sustainable supply chain, download the recent Oxford Economic Research.
