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Due to the introduction of PROCONVE MAR-I emission regulation, the Brazilian automotive industry developed Diesel engines to comply with this legislation demanding new components to automotive supplier base. However, at the same time this industrial sector was facing a difficult financial situation caused mainly by the crisis that impacted Brazil in last years. In 2015, around 27 local suppliers filed for bankruptcy affecting the whole Automotive Supply Chain. This scenario already represents a problem for current products established in market, but it represents a major challenge for new launches. This paper will discuss how MWM Motores Diesel made sourcing decisions and manage to develop components and suppliers in this harsh scenario, also looking for the supplier base optimization.

Due to financial global crisis started in 2008 and intensified in the past years in Brazil, the maintenance of a good company’s financial situation is a big challenge and it is more relevant in actual moment. Because of expected turbulent scenario for the next years, it is necessary to adopt strategies to mitigate risks that involve Supply Chain impacting industrial production. In this way, it is crucial adopt strategies and actions that assist to evaluate the performance of suppliers and its associate potential financial risk, what can be considered a companies’ success differential factor during crisis period as well. In this scenario, MWM Motores Diesel adopts an internal process of monitoring the risk of suppliers based on internally developed tools and others available at market. This article aims to assist other companies of automotive sector to monitor their supplier base, identify imminent risk to Supply Chain and trace and run projects to reduce or eliminate these risks.