Which of the following is a common risk in supply chain management?

Supplier failure is considered a common risk in supply chain management because it can significantly disrupt the flow of materials and products within the supply chain. A supplier's inability to deliver goods on time, provide the required quality, or maintain production levels can lead to production delays, stock shortages, and ultimately affect customer satisfaction and revenue. This risk necessitates businesses to establish strong relationships with suppliers, implement contingency plans, and often diversify their supplier base to mitigate potential failures.

While high employee turnover can impact operations and overall efficiency, it is more of an internal organizational issue rather than a direct supply chain risk. Increases in transportation costs can affect logistics budgets but may not necessarily threaten the core function of supply chain operations as much as a supplier's failure. Likewise, a reduction in product demand is certainly a concern for inventory management and sales forecasting, but it relates more to market dynamics than the operational risks that stem from the supply chain itself. Thus, supplier failure emerges as a critical consideration in the context of supply chain management risks.