Use Case: Securing two years of production in a memory shortage

A global memory chip shortage put the production of a leading agricultural machine builder at risk. LOGIC brought the module manufacturer, the electronics assembly company and the machine builder to one table and secured the critical components for two years of production.

The challenge

A large machine builder in the Dutch agricultural sector depends heavily on one product: a high-end, capital-intensive fully automated machine. Thousands are built every year for farmers around the world.

Most of the machine consists of readily available mechanical parts. Delivery, however, depends on intelligent custom electronics. The explosive growth of AI data centres has created a global memory chip shortage. For this machine builder, that meant a real risk of production stalling in the medium term, with serious consequences for the company and its customers.

Why LOGIC was at the table

LOGIC is the authorised Benelux importer of the advanced computer modules used in these machines. By design they use these critical components. The modules go to the machine builder’s electronics assembly company for integration in a complex vision system. As a supplier in the chain, LOGIC has a direct stake in the machine builder’s success.

So LOGIC brought everyone together: the developer and manufacturer of the computer modules, the electronics assembly company and the machine builder, for one question: how do we secure the critical components for two years of production?

Two years was a deliberate choice. Nobody can yet say when the memory market will stabilise, but this term gives parties time to access the market and respond when necessary.

The solution

As a large buyer of memory chips and CPUs, the module manufacturer managed, with considerable effort, to secure sufficient critical components. That required a major upfront investment involving all parties in the supply chain.

Given what was at stake, the machine builder agreed to pre-finance the full stock. In return, every party in the chain provided guarantees for the deliveries. It was a complex process that took several months.

LOGIC steered that process: aligning the parties, options, volumes, timelines and guarantees until every link in the chain was committed.

The result

• All required components are now held in stock at the module manufacturer.
• The stock is reserved exclusively for the machine builder’s computer modules.
• The supply chain can now respond more easily to fluctuations in demand.
• Production is secured for two years, regardless of how the memory market develops.

What this means for you

Component shortages are not solved by one supplier alone. They are solved by a chain of trust that plans together and shares the risks. If your product depends on critical components such as memory, CPUs or computer modules, the time to secure supply is long before the shortage hits your line.