supply discrepancy report (sdr) year in review · evaluation, correction, and improvement of...

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Discrepancy/Deficiency Reporting Functional Review

Supply Discrepancy Report (SDR)Year in Review

Ellen Hilert, DoD SDR Administratorand

Ben Breen, Alternate SDR Administrator

SDR Process Review Committee (PRC) Meeting 17-01March 16, 2017

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Year-in-Review

Overview Metrics Component System Interfaces with WebSDR DLMS Changes: PDCs, ADCs and PDCs under

development SDR Implementation Calls DLA/Service Suspended Asset IPTs DLMS Program Office Day-to-Day SDR Support Background

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Overview

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SDR ProgramThe supply discrepancy reporting program is designed to promote

evaluation, correction, and improvement of logistics operations.

To assist DoD Components in their SDR quality programs that must include periodic reviews to assess the accuracy and quality of work processes applicable to supply discrepancy processing.

Data collected enables DOD Components to: Identify trends Establish volume and dollar values of SDRs Bring management attention to problems with shipping activities as necessary Improves the requisitioning and distribution process within logistics operations

Official SDR guidance is Defense Logistics Manual (DLM) 4000.25, Vol II, Chapter 17 at URL: http://www.dlmso.dla.mil/elibrary/manuals/dlm/dlm_pubs.asp

http://www.dlmso.dla.mil/elibrary/manuals/dlm/dlm_pubs.asp

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DoD Supply Chain Materiel Management ProceduresDoD 4140.01-M

“Storage activities will conduct physical inventories, initiate and conduct causative research, and prepare supply discrepancy reports or storage quality control reports; resolve inventory discrepancies; investigate and assess liability for loss, damage, and destruction of government property; and take applicable actions necessary to ensure that the physical on-hand quantity equals the total item property record quantity. Inquiries and audits of physical inventory discrepancies will be directed to the storage activity maintaining physical custody.”

“For receipt inspection, acceptance, and discrepancy reporting, DoD Components will:(1) Perform inspection and acceptance at destination as part of the receiving process when

receiving shipments of materiel from commercial sources that require the inspection and acceptance.

(2) Reflect the actual condition of the materiel received in materiel receipt transactions based on screening or inspection.

(3) Reflect the quantity accepted from commercial sources for financial system interfaces and capture UII, when applicable, in the materiel acceptance transactions.

(4) Report all discrepant receipts in accordance with established DoD issuances cited in paragraph 8i of this enclosure covering supply, transportation, or quality discrepancies. Design supply systems to report supply discrepancies as an integral and seamless part of the receiving process.

(5) Establish a capability to automatically receive deficiency reports, store and process (e.g., categorize, sort, and access related deficiencies), assign investigations, and automatically route and track disposition in each DoD activity responsible for resolving discrepancy reports.”

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Metrics

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SDR Metrics OverviewTotal SDR Transactions by Month SDR

Submission Type Qualifier

Name

00 Original Report01 Cancellation11 SDR Reply15 Request for Reconsideration22 Information Copy44 International Logistics Control Office (ILCO)

Rejection45 Follow-Up 49 Historical Record Posted (no outbound)50 FMS Challenge after Request for

ReconsiderationCN Completion Notice (indicates SDR closed)CO CorrectedSU Status or Additional Information in Response to

Interim Reply (after investigation)SDR Transactions by Submission TypeReport Reply

DailyAverage

Feb-17 5,243 387 8.0%Jan-17 4,857 (166) -3.3%Dec-16 5,023 (309) -5.8%Nov-16 5,332 8 0.2%Oct-16 5,324 (514) -8.8%Sep-16 5,837 (10) -0.2%Aug-16 5,847 818 16.3%Jul-16 5,029 (916) -15.4%

Jun-16 5,945 1,100 22.7%May-16 4,845 374 8.4%Apr-16 4,472 (7) -0.2%Mar-16 4,479 409 10.0%Feb-16 4,070 266 7.0%

146,817 150,557 155,703 159,964 165,035 175,117 181,272 155,913 178,351

Total Transactions Differences

150,202 134,147 138,840 113,965

00 01 15 22 45 47 49 50 CO 11 44 CN SUFeb-17 47,288 604 847 311 9,055 - 1,190 1 2,297 48,092 32 35,883 1,217 Jan-17 47,553 585 836 334 10,993 - 1,111 1 2,762 47,839 23 37,224 1,296 Dec-16 49,220 532 1,028 206 11,276 - 1,265 1 2,952 47,941 31 40,355 896 Nov-16 48,339 653 794 276 10,162 - 1,021 - 3,552 54,140 35 39,531 1,446 Oct-16 51,107 593 662 277 9,674 - 1,106 2 3,305 55,852 45 40,844 1,568 Sep-16 55,602 740 746 330 8,788 - 1,080 - 3,896 57,429 44 44,781 1,681 Aug-16 56,569 622 714 410 8,230 - 1,291 3 3,736 62,625 55 45,964 1,053 Jul-16 49,375 605 583 247 8,692 - 1,200 3 3,881 52,194 30 38,566 537

Jun-16 56,156 846 834 413 8,718 - 975 4 3,645 61,406 45 44,293 1,012 May-16 48,318 1,055 866 1,330 7,819 - 1,058 - 3,004 49,920 36 36,020 737 Apr-16 43,248 1,057 1,115 1,308 8,546 - 810 3 3,134 42,155 33 32,008 675 Mar-16 43,393 1,429 1,065 1,456 9,076 - 1,498 1 2,987 45,930 35 31,119 851 Feb-16 34,756 1,528 893 1,367 8,377 - 1,095 3 2,109 36,315 41 26,418 1,063

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Component System Interfaces with

WebSDR

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Discrepancy/Deficiency Reporting Functional ReviewSDR Information Exchange

Integrating Component SDR Applications

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GSA WebSDR Interface

• Current Functionality:‒ Incoming SDRs, corrections, follow-ups, cancellations, requests

for reconsideration, and 2nd FMS request for reconsideration‒ Outgoing GSA replies

• Testing Underway:• Attachments• Incoming reply transactions: forwarding actions, ILCO rejection notices,

completion notices, storage activity replies• Pending Enhancements for DLMS Compliance:

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Army WebSDR Interfaces• Army Logistics Modernization Program (LMP):

‒ Applicable to: ‒ Army ICPs (AKZ, A12, A35, B14, B16, B17, B46, B64, B69)‒ Non-Army Managed Item (NAMI) ICP (AJ2)‒ Army munitions depots

‒ Current Functionality:‒ Incoming SDRs, corrections, follow-ups, cancellations, requests

for reconsideration, and 2nd FMS request for reconsideration– Outgoing Army replies

– Pending Enhancements for DLMS Compliance:‒ Incoming reply transactions to LMP: forwarding actions, ILCO

rejection notices, completion notices‒ Attachment functionality‒ Generation of new SDRs for Army depot receipts

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Army WebSDR Interfaces (continued)

• Information Systems Security Program Application (ISSPA):– Applicable to: Communications Security (COMSEC) – Planned Functionality: Outgoing SDR only. Transitions SDR submission

from swivel chair (WebSDR) to integrated with the supply system and receiving process.

– Concerns: Potentially redundant to future LMP-wide depot support – Status: Army drafting Proposed DLMS Change (PDC).

• Global Combat Support System-Army (GCSS-A)• Applicable to: Army retail/tactical activities• Status: Preliminary discussions have started to document the interface

requirements.• Concerns: Current SDR process documents internal SDRs but is not

consistent with DLMS requirements (no outgoing transactions, code sets are incomplete).

• Planned Functionality: DLMS compliant system.

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DLMS Changes: PDCs, ADCs, and PDCs under development

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PDCs(None in staffing at this time)

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ADCs

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ADC 1092 (December 27, 2016)

WebSDR Interface with Security Cooperation Enterprise Solution (SCES):

Establishes code values for identification of SCES as an initiating system and clarifies parameters for initial deployment functionality applicable to Navy Foreign Military Sales (FMS)/Navy International Logistics Control Office (ILCO)

• Planned Deployment Functionality: Receive FMS-unique transactions (XDN) from FMS purchasers via the DAAS’ Automated Message Exchange System (DAMES); outgoing SDRs, corrections, follow-ups, cancellations, 1st/2nd requests for reconsideration; receive SDR replies; provide visibility to FMS purchaser via Security Cooperation Information Portal (SCIP); ensure visibility to PDREP via WebSDR distribution copy

• Future Functionality: Quality deficiencies; ILCO rejection, attachments, SLOA, expanded data content

• Status: Limited testing with DAAS begun; end-to-end testing in March-April timeframe

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ADC 1160 (January 19, 2016)Procedures for Recommending and Authorizing Credit for Validated SDRs, Associated Reply Code Revisions, and Expanded use of the Reason for Reversal Code in Issue Reversals:

Documents use of issue reversal for generation of credit in response to DLA audit team concern. Goal is to provide clear audit history while not negatively impacting the requiring Service system (allowing it to reset original demand with all associated data)

Significant Changes/Impacts: • Updates SDR reply codes to separate the storage activity’s

recommendation for financial action from SoS’s reply indicating that an adjustment is being provided and discretely identifies when credit is provided by reversal of the original issue.

• Updates MILSTRAP for use of issue reversal transactions.• Expands and standardizes use of issue reversal reason code.

Status: SDR codes implemented; Reversal reason codes awaiting prioritization.

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ADC 1161A (February 23, 2017)Uniform Procurement Instrument Identifier (PIID) Numbering System in the Federal/DLMS Implementation Conventions and DLMS Manuals:

This change updates procedures to accommodate the PIID and provides guidance for legacy procurement instrument identification number (PIIN)/legacy call/order number during transition period.

Significant Changes/Impacts: • PIID numbering system must be implemented by March 31,2017.• The 13-position PIID call/order number (identified by F in the 9th

position) may be used independently on a shipment (unlike the legacy four-position number call/order number that must always be associated with the PIIN).

• When applicable, the PIID call/order must be provided on the SDR in the existing field used for the contract number.

• PIID/PIID call/order number used by WebSDR in EDA web service to extract contract administration office (CAO) and vendor CAGE code.

Status: If PIID call/order is used, WebSDR loses visibility of the base contract number. Awaiting feedback on data extract upgrade from EDA team.

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ADC 1169 (April 25, 2016)DLA Distribution Center Denial Scenarios Associated with Product Quality Deficiency Report (PQDR) :

Identifies procedures for denial of an Materiel Release Order (MRO)/Disposal Release Order (DRO) identifying a PQDR exhibit by report control number (RCN) when DLA Distribution cannot locate specified exhibit.

Significant Changes/Impacts: • Distribution center will record the PQDR RCN on receipt and perpetuate to

an SDR with Discrepancy Code Q11 for receipt notification. • When the ICP provides a MRO/DRO containing the PQDR RCN (or

identifying the PQDR RCN in the exception data pending DLMS implementation), DSS will match the PQDR RCN to an internal RCN table:

• Management Code Q applies to denial when the PQDR RCN in the MRO/DRO does not match internal table at MRO allocation or the RCN is not in the expected location and is denied during pick.

Status: ADC implemented by DLA (Distribution Standard System (DSS) and Enterprise Business System (EBS)).

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ADC 1174 (January 11, 2017)Miscellaneous SDR Enhancements:

Documents various changes needed to improve data quality and support user community.

Significant Changes/Impacts: • WebSDR input, edit, routing, and management report revisions including:

‒ Requests capability for direct WebSDR input of PIID/contract number, CAO DoDAAC, and shipper on the SDR reply when not systemically populated

‒ Adds local stock number (LSN) as acceptable form of materiel identification for direct Web input (already allowed via transaction)

‒ Establishes edit to block use of Action Code 3A (frustrated freight at port) by other types of submitting activities

‒ Provides rules for use of special characters in file names for SDR attachments and in email addresses.

‒ Authorizes routing via transaction to LMP for SDRs addressed to specified Military munitions depots (rather than via email).

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ADC 1174 (continued)Significant Changes/Impacts: • Establishes forwarding business rules and automated support for wrong

item SDRs where the manager of the wrong item is other than the intended SoS.

• Requires correction of the document type code by the source of supply for selected customer-submitted SDRs.

• Adds SDR Reply Codes: • Reply Code 609 - storage activity to reclassify suspended materiel.• Reply Code 610 - storage activity to close SDR that remained open

after materiel was previously dispositioned• Directs termination of Navy PDREP default for submitter DoDAAC

(N45112, NAVSEADET Naval Material Quality Assessment Office) to standardize procedures and provide better visibility of the true submitter. WebSDR to transition to using the submitting system identification to recognize PDREP submissions (ensureing return of reply transactions to the correct system).

Status: Reply codes authorized; selected changes implemented; PDREP DoDAAC transition prioritized for near-term implementation.

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ADC 1181A (February 14, 2017)Implementing the Cause Code for SDRs and Developing a Data Exchange Between WebSDR and Past Performance Information Retrieval System - Statistical Reporting (PPIRS-SR) for Contractor Noncompliance SDRs

Requires all Components to assign cause codes identifying contractor noncompliance. Provides visibility of contractor noncompliance to PPIRS-SR for evaluation of contractor performance.

Significant Changes/Impacts: • Item manager assigns a cause code identifying contractor noncompliance

in final SDR reply, when applicable. This includes informational SDRs.• CN - Contractor Noncompliance. Materiel received by the storage site, customer,

transshipper (e.g., Consolidation and Containerization Point (CCP) or aerial port) is not in accordance with the contract requirements (e.g., shortage, wrong item, missing item unique identification (IUID), missing documentation, etc.).

• CP - Contractor Packaging Noncompliance. Materiel received by the storage site, customer, transshipper (e.g., CCP or aerial port) with packaging/labeling that is not in accordance with the contract requirements (e.g., materiel damaged as a result of inadequate packing, missing passive radio frequency identification (pRFID) tag, noncompliant wood packaging material, etc.).

• CS - Contractor Noncompliance (Subcontractor). Same as CN, applicable to a subcontractor.

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ADC 1181A continued WebSDR will determine if the SDR record added, removed, or updated, a

contractor noncompliance cause code and will transmit the record to PPIRS-SR (web service or other process to be defined).

Contractors may submit challenges to SDR findings of noncompliance via PPIRS-SR. Item managers must be prepared to respond to contractor challenges.

DCMA must respond to the action copy of the SDR within 25 days when forwarded via the SDR Reply Code 501. (DSS retains SDR in open status.)

DCMA replies with results of their investigation using the 300-series reply code to transfer action back to the item manager. (DSS retains SDR in open status.)

Item manager provides final disposition.Status: OSD SCI and DPAP tracking implementation of this ADC due to the departments interests in holding vendors liable. Implementation no later than November 1, 2017.

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ADC 1202 (July 12, 2016)

Processing of Advance Shipment Notice (ASN) for Certificate of Conformance (CoC) or Alternate Release Procedures (ARP) and Edit Blocking Inappropriate SDR for Missing Quality Assurance Representative (QAR) Signature (Discrepancy Code D4) and Associated Suspended Receipt

Establishes a requirement for the Distribution Standard System (DSS) to capture CoC and ARP indicators when present in the DLMS 856 ASN provided via Invoicing, Receipt, Acceptance, and Property Transfer (iRAPT) and prevent creation of SDRs for missing QAR signature when present.

Significant Changes/Impacts: • Ensures that the receiver has visibility on receiver screens of the ARP

or CoC indicator• Prevents unnecessary suspension of materiel.Status: Awaiting DLA Distribution prioritization.

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ADC 1203 (January 30, 2017)Procedures for Packaging Discrepancies at FMS Freight Forwarder or Component Retail/Tactical Level Activities including Estimated/Actual Repackaging Cost:

Establishes procedures for processing SDRs submitted for reimbursement of repackaging costs including FMS shipments frustrated at the freight forwarder facility and retail activity receipts needing repackaging prior to storage or distribution.

Significant Changes/Impacts: • SDR applications must allow users to populate the repacking cost and

new estimated/actual cost flag.• FMS SDR applications must allow users to populate materiel location. • FMS SDRs must submit SDR prior to incurring repackaging costs by a

third party packer. Employs multi-step process for approval to repackage and submission of invoice as an SDR attachment.

• Establishes Reply Code 109 to distinguish credit for repackaging. Status: Concurrent updates to Defense Transportation Regulation (DTR) and Security Assistance Management Manual (SAMM) pending.

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ADC 1221 (July 29, 2016)

Mandatory SDR for DLA Distribution Center Receipts with no PMR:Establishes a requirement for DLA Distribution Centers to send an SDR to the owner/manager when the distribution center processes a receipt without a PMR for materiel owned by that organization

Applicability: All procurement and non-procurement source receiptsSignificant Changes/Impacts: • DLA Distribution Centers will submit an informational SDR using Discrepancy

Code Z3 (distribution center receipt not due-in) and Action Code 3B (discrepancy reported for corrective action and trend analysis; no reply required) for receipts lacking a PMR when no discrepancies other than discrepancies are noted

• WebSDR will generate monthly reports by owner/manager listing SDRs containing Discrepancy Code Z3 (as first, second, or third discrepancy code) using standard WebSDR report layout‒ Automatically distributed via email to the Army, Navy, Air Force, Marine Corps, and

DLA SDR PRC primary and alternate members, and any other representative per Service/Agency request

‒ No PMR Report for DLA includes separate section for other miscellaneous owner/managers

‒ Initial distribution scheduled to begin April 2017

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PDCs Under Development

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Procedures for Turn-In of Partial Small Arms/Light Weapons (SA/LW) to DLA Disposition Services and Associated Discrepancies

Significant Changes/Impacts: Stipulates need for a missing parts list or equivalent certification to

accompany turn-in of a serialized receiver with missing/removed parts. Revises MILSTRIP authorizing the owning Component to use a

signed statement certifying that the weapons have missing parts in lieu of detailed listing (includes authorizing official contact information and digital signature).

Outlines procedures for rejection of partial weapons and preparation of an SDR sent to the turn-in activity using new internal discrepancy code. Partial weapons held in segregated storage.

Establishes new time standard, allowing 25 days for discrepancy resolution with no follow-up.

Draft PDC 1175A (Replaces PDC 1175)

Clarifies guidance for the turn-in of partial/incomplete weapons by the weapon national stock number (NSN) to DLA Disposition Services

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Draft PDC 1175A (continued)Significant Changes/Impacts:• If not resolved via SDR Reply or direct contact with the turn-in activity,

the partial weapons will be returned. • If the turn-in activity cannot be located, DLA Disposition Services will

contact the DoD Registry for resolution/ disposition instructions or referral to the owning Service.

• This change also clarifies that non-serialized weapon parts turned in under the whole weapon NSN without the serialized receiver will be considered discrepant. Parts will be receipted under more appropriate materiel identification and a wrong item informational SDR provided. The parts will be mutilated and/or destroyed consistent with demilitarization code requirements, local policies, laws, and regulations.

• It will be the responsibility of the turn-in activity to correct the SA/LW Registry and IUID Registry as applicable.

Current Status: In final coordination prior to formal staffing.

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Draft PDC 1217WebSDR Process Enhancement for Source of Supply Disposition Response to Storage Activity on Customer-Initiated SDRs:

Establishes procedures for the source of supply to request the storage activity/initial action activity take additional actions after that activity has already replied and closed the SDR within the Component SDR system.

Significant Changes/Impacts: • Allows the source of supply to return an SDR to the storage activity/initial

action activity with disposition instructions (e.g., issue reversal or inventory adjustments) using an interim reply thereby providing an audit record for this request and the resulting action.

• The storage activity will provide a SDR reply confirming action. Alternatively, a new reply code will be available if the initial action activity cannot perform disposition instructions.

Status: Draft PDC under internal review.

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Draft PDC 1223Transitioning SDR Transactions to DoDAACs:

Updates SDR transaction formats to eliminate use of Routing Identifier Codes (RICs) and use only DoDAACs for all activity identification: action activity, submitter, owner/manager, shipper.

Significant Changes/Impacts: • Awaiting feedback from Components on research to confirm

current functionality for each SDR system and each activity identification requirement.

• DSS verified they can accept any type of SDR addressed to a DoDAAC.• DSS to ensure RIC/DoDAAC list is updated to allow AF ES-S SDRs

addressed to a DoDAAC to flow to DSS (currently rejected by WebSDR).

• Goal is to achieve full transition of SDR process prior to mandatory date for DLMS compliance by 2019.

Status: PDC under development.

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Draft PDC 1236Miscellaneous SDR Enhancements and Procedural Updates:

This change will document multiple process and documentation updates with minimal impact to Component systems

Significant Changes/Impacts: • Correction of terminology associated with use of reconsideration requests

(update will refer to submitters rather than “customers” to support all SDR document types).

• Hyperlink for CAGE Code address lookup in queries/reports.• Edit in WebSDR to block use of the forwarding Reply Code 504 to be used

in conjunction with another reply code. • AFSAC confirmed elimination of AFSAC historical procedures is complete.

DLMS Program Office will remove business rules from DLMS 4000.25, Volume 2, Chapter 17, SDR.


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Draft PDC 1241Procedures for Processing SDRs for Total Nonreceipt of DLA Consolidation and Containerization Point (CCP) Shipments:

Clarifies the procedures and responsibilities of all parties in the resolution of nonreceipt SDRs for shipments through DLA CCPs.

Significant Changes/Impacts: • Submitters will be able to direct SDRs to ICP or CCP first. Forwarding

procedures will enable coordination of the SDR for full response.• Procedures will leverage the PDC 1217 backward flow to allow the item

manager to return an SDR to the CCP for research once the proof of delivery is provided by the vendor.

• Procedures are applicable to all Components; however, the PDC includes unique requirements applicable to General Services Administration (GSA)-directed shipments. GSA will not provide credit if vendor proof of delivery to CCP is available.

Status: PDC drafted and now being finalized.

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Draft PDC 1249Revised Procedures for Assignment of Materiel Returns Document Number:

This change revises rules for document number assignment for directed returns coming into DLA Distribution. This process will allow for an auditable record and ensure all actions are harmonized.

Significant Changes/Impacts: • Updates/corrects SDR guidance to address DLA Distribution ship-in-place

scenario as an exception (because DSS cannot reuse original document number for new PMR) and otherwise retains guidance to direct return on original document number with new transportation control number (TCN).

• If the SDR doesn’t provide a new document number and the customer’s system cannot reuse the original document number for the return shipment, the SDR submitter will need to inform the action activity using a Reconsideration Request.

• The action activity must then assign a new document number for the directed return, cancel the existing PMR, and generate a new PMR for the new document number.


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Draft PDC 1250 Standardized SDR Duplicate Criteria:

Requires adoption of standard duplicate SDR rejection logic among all DoD SDR Systems to prevent Component system rejections of “valid” SDRs and eliminate inconsistent business rules.

Significant Changes/Impacts: • Current rules define a duplicate "as a new submission matching an

existing SDR on document number/suffix, discrepancy code, and TCN (if provided)." However, Components were authorized use of more stringent criteria when consensus could not be reached for standardized procedures.

• PDC will enforce DoD-wide rules allowing multiple SDRs on the same document number to support partial shipment receipts by TCN, concealed discrepancies discovered after initial SDR is reported/resolved.


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SDR Implementation Calls

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SDR Implementation Team CallsScheduled opportunity to discuss wide variety of issues – ranges from SDR policy, procedures, transaction processing to MILSTRIP, MILSTRAP, and MILSBILLS procedures as they relate to discrepant receipts• Participants include functional and systems personnel.• Vital forum for information sharing.• A few current topics:

‒ Components must ensure SDR Replies include contact information (phone number, or email, or both). Inclusive of system generated replies.‒GSA testing and failing transactions without this information per

current rules.‒ Duplicate WebSDR Control Number assigned by WebSDR. ‒ Duplicate WebSDR Control Numbers submitted by AF ES-S.

‒ WebSDR duplicate scan identified these and rejected them.

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Direct Turn Over (DTO) Materiel LossNew Discussion Topic: Customers at the Fleet Readiness Centers (FRC) identified a procedural and accountability gap for reporting/ resolving total nonreceipt discrepancies under DTO procedures. The local DLA Distribution Center signs for the shipment (includes issues from stock and DVD/all sources of supply). The distribution center notifies the customer that the materiel has been delivered via supply status; however, the customer never receives the materiel. • Under DTO procedures, DLA Distribution doesn’t preform kind, count, and

condition. This materiel is not receipted into DSS inventory. • Upon processing the delivery notice (Supply Status Code PD), the FRC

transmits a virtual materiel receipt acknowledgment to the source of supply (ADC 372).

• When the customer fails to receive the materiel, the customer submits an SDR. When the SDR is directed to the shipping activity, the shipping activity rejects the SDR stating materiel shipped as requisitioned/proof of delivery available.

• After preliminary discussion between DLA ICP team, DLMS Program Office, and DLA team supporting Navy FRC, agreement reached on interim way ahead for SDR processing pending further exploration of automated solutions.

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DTO Materiel Loss (continued)− Customer to submit SDR per current procedures, When situation known in advance

(by coordination with DLA personnel supporting the FRC), the SDR will include remarks indicating DTO with proof of delivery applies and SDR should be forwarded to the source of supply.− Shipping distribution center will transfer action to the source of supply using 300-

series forwarding reply.− If is rejected, customer will submit a request for reconsideration to reopen SDR with

remarks as above. Distribution center will forward as above.− Source of supply must coordinate off-line with receiving distribution center to

research/attempt to locate missing materiel. Source of supply must reply with credit, reshipment, or other resolution as applicable.

• DLA Distribution will develop guidance for distribution centers and draft a PDC to document above procedures.

• Additional research required for feasibility of systemic process to forward the SDR to the receiving depot (if forwarded under current logic (504), DSS would reject, document number not on file – with no SDR at receiving activity, that activity is not represented in metrics)

• Accountability issue for Navy, records are not accurate• Virtual MRA cannot be retracted/source of supply dependent upon MRA for payment

of vendor invoice.

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DLA/Service Suspended Asset IPTs

• DLA Distribution and DLA J3 refocusing Service IPT calls on high dollar and aged SDRs/SQCRs.

• Monthly meetings with each Service to address issues and coordinate resolution:

• AF• Navy• MC• Army

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• DLA Distribution IPTs with Services – Obtain disposition and identify root cause

• PDC to automate SQCR process for MIL SVCs

• $1.9B of J, K, L condition in stock

• Work open backlog of SDRs & SQCRs w/Disposition

Un-issuable Materiel (CC J/K/L)

Reduce Suspended Stock

Background: Large amount of stock that can not be issued due to discrepancies identified by DLA Distribution.

Opportunity: Partnership between DLA/Service Supply Chains to gain disposition ( DRMO, PPP&M, etc.) and reduce causes that require stock to

be suspended.

Benefits: Place materiel back into issuable condition, fill backorders, reduce storage footprint and related handling costs, prevent re-

procurement, & increase order effectiveness.

Service Supply Chain

DLA Supply ChainDLA Distribution

J,K,L Dollar Value as of 02 March, 2017

Battle with Suspended Stock

Joint Approach to Resolution

Un-issuable Materiel

$ Value Trend of J,K,L

$0.00$100,000,000.00$200,000,000.00$300,000,000.00$400,000,000.00$500,000,000.00$600,000,000.00$700,000,000.00$800,000,000.00$900,000,000.00

$1,000,000,000.00

1/25

/201

14/

5/20

127/

5/20

1210

/1/2

012

1/2/

2013

4/1/

2013

7/2/

2013

10/1

/201

33/

3/20

145/

30/2

014

9/2/

2014

5/1/

2015

8/31

/201

52/

6/20

17

CC/JCC/K

3/02

/201

7

Army, $445M

Air Force, $388M

USMC, $19M

Navy, $453M

SMS, $486M

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Navy/GSA Drumbeat IPT• Recurring meetings between Navy and GSA to discuss support issues

including lack of visibility for Navy SDRs. SDRs for discrepant DLA Distribution receipt of Navy requisitioned materiel not reaching GSA.

• SDRs generated by distribution centers/forward receiving locations operated under DSS require a two SDRs for resolution (flow diagram follows): (1) DLA prepares SDR to owner (Navy) on a storage activity SDR (Document Type 8) asking for disposition. (2) Navy must submit a customer SDR (Document Type 6) to GSA asking for disposition and/or credit. Upon receipt of disposition from GSA, Navy must provide disposition to the receiving activity (e.g. remark/repackage/upgrade condition).

• Long standing PDREP automated logic for conversion of SDR type and forwarding action was inadvertently lost during PDREP upgrade.

• Navy reporting 1/3 of GSA-originated stock at 5 forward receiving locations now suspended awaiting disposition causing operational impact. (2K SDRs)

Status: Navy focusing on expediting submission of SDRs to GSA for priority operational requirements and recurring vendor problems. Navy to consult with PDREP team to determine if lost functionality can be restored or if there are other options for faster input of the necessary SDRs. DLA will establish a continuous process improvement (CPI) initiative to explore alternatives to the current two-SDR requirement.Note: Other Components impacted; DLA Aviation supporting AF SDRs.

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Current Two-SDR Flow

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DLMS Program Office Day-to-Day SDR Support

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DLMS Program OfficeDay-to-Day SDR Support

• Fielding questions on policy and transaction processing• Reviewing test scenarios and test results• Advising Services on how to handle failed SDRs• Prioritization of DAAS WebSDR workload• Advising DAAS on development of program logic

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Any Questions?

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Background

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WebSDR Background

• Use of the DLMS interface for SDR transaction exchange is required under DoD Supply Chain Materiel Management Manual (DoDM 4140.01)

• Procedures are maintained in Defense Logistics Manual (DLM) 4000.25, Volume 2, Chapter 17, Supply Discrepancy Reporting

• DAAS implements the WebSDR procedures, hosts the database, and prepares reports

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WebSDR Background Continued A Web supported tool integrating business events to:• Report supply discrepancies and route for action• Provide appropriate SDR responses and resolution• Standardize SDR transactional interfaces and data• Capture & provide a life-cycle event audit trail• Provide management information for analysis

Integrates Component SDR applications as required by the Defense Logistics Management Standards (DLMS)• Supports Web input pending DLMS implementation

Database of all actions producing reports• View management reports/query results online, or• Sends reports to user’s email for detailed analysis