Business Terms Dictionary

Stockout With Demand (SOWD)

Stock Out with Demand (SOWD) refers to a situation where an item is not immediately available in stock but has an active requirement, meaning there is demand for it that cannot be fulfilled right away. © Copyright 2025 Demand Driven Institute. Used with permission.

What is it used for?


SOWD is used as a key supply chain performance indicator to measure availability issues and potential disruptions. Tracking SOWD helps businesses identify gaps in inventory management and take corrective actions to prevent future stockouts.


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In ForgeFlow Cloud ERP, the demand-driven replenishment system and Execution Alerts enable early detection of stock shortages, allowing supply chain teams to respond quickly. By leveraging DDMRP replenishment, businesses can minimize Stock-Out With Demand (SOWD) occurrences, ensuring materials are available when needed, reducing delays, and improving service levels.