DEFENSE LOGISTICS AGENCY 

HEADQUARTERS 

8725 JOHN J. KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 22060-6221 

MEMORANDUM FOR DISTRIBUTION 

May 14, 2014 

SUBJECT: Defense Logistics Management Standards (DLMS) Supply Discrepancy Report 

(SDR) Process Review Committee (PRC) Meeting 14-02, May 7, 2014 

The attached minutes of the SDR PRC Meeting 14-02 are forwarded for your information 

and action as appropriate. 

The DLA Logistics Management Standards point of contact is Ms. Ellen Hilert, DOD 

SDR System Administrator, (703) 767-0676, DSN 427-0676; or email ellen.hilert@dla.mil. 

Attachment 

As stated 

DISTRIBUTION: 

ODASD(SCI) 

Supply PRC Primary/ Alternate Representatives 

Attendees 

Director 

DLA Logistics Management 

Standards Office 
 

DEFENSE LOGISTICS AGENCY

HEADQUARTERS

8725 JOHN J. KINGMAN ROAD 

FORT BELVOIR, VIRGINIA 22060-6221 

 May 14, 2014 

MEMORANDUM FOR RECORD 

SUBJECT: Defense Logistics Management Standards (DLMS) Supply Discrepancy Report (SDR) 

Process Review Committee (PRC) Meeting 14-02, May 7, 2014 

A. Purpose: The Defense Logistics Management Standards Office (DLMSO) hosted a focused 

topic meeting on quality-related receipt notification SDRs. This meeting was intended as a 

preliminary discussion of a proposed business rule change that will impact distribution of these 

SDRs. The proposed flow diagram for these meeting has been updated based upon discussion 

and is provided as an enclosure. Meeting minutes are available from the SDR PRC Webpage at 

www.dla.mil/j-6/dlmso/Programs/Committees/Supply/supplySDR.asp. 

B. Background: 

1. When the item manager submits a Stock Screening Request to DLA Distribution 

locations, all stock under DLA Distribution visibility is screened regardless of ownership. This 

process is used by the item manager to identify all materiel that is associated with a suspected 

quality deficiency reported via Product Quality Deficiency Report (PQDR) or subject to some 

other type of investigation, e.g., counterfeit material/unauthorized product substitution 

(CM/UPS). DLA Distribution establishes a Receipt Restriction within the Distribution Standard 

System (DSS) for this materiel to ensure that materiel being received will be screened while the 

stock screening action is open for materiel in storage. In addition, a Receipt Restriction can be 

requested by the item manager independent from the Stock Screening Request and these can 

remain open indefinitely. In cases where the materiel meeting the criteria established for receipt 

restriction is discovered during receipt, the materiel is suspended, and an SDR “receipt 

notification” is sent to the material owner. The quality-related three-position Q-series 

discrepancy codes used on these SDR do not indicate a supply discrepancy, but rather a storage 

activity receipt of materiel requiring special processing due to a potential quality deficiency. 

When the owner is different than the manager requesting the screening, and the owner may not 

understand the underlying reasons for the suspension of their materiel. The owner may have no 

recourse other than to submit another SDR to the manager, since there are no alternative 

procedures for the owner to obtain credit or disposition instructions from the manger. 

2. DLMSO identified this process as a good candidate for re-engineering, particularly in 

light of the ongoing initiative to re-engineer the Storage Quality Control Report (SQCR) process. 

The Stock Screening Request followed by SQCR may similarly result in suspended materiel 

where the owner is different from the manager requesting the screening action. The SQCR reengineering initiative was discussed with the Components at the Joint SDR/Stock Readiness 

Meeting 13-01 and is expected to be ready for staffing shortly as Proposed DLMS Change 1084. 
C. Topics Discussed: 

1) Stock Screening Request/Receipt Restriction Screens: Ms. Hilert, DOD SDR System 

Administrator, discussed the need to incorporate sufficient remarks to identify the reason for 

screening. Because the Stock Screening Request information is perpetuated to the receipt 

restriction screen used by receiving personnel, and this information may also be perpetuated to 

the SDR remarks, the guidance should be as informative as possible and written in a way that 

supports all related uses. 

2) SDR Distribution: Ms. Hilert is recommending SDRs containing the three-position Qseries discrepancy codes apply revised routing rules whereby the storage activity identifies the 

item manager as the action activity and the owner as an information copy recipient. There will 

be a new Action Code: 4A, "Owner notification for suspended stock due to Manager screening; 

Disposition instructions requested from Item Manager (no action by Owner pending Manager 

response)." 

3) Reimbursement to Owner: One of the primary goals for this process is to return quality 

deficient materiel to the item manager and obtain credit for the current owner. Based upon 

discussions with DLA during the development of draft PDC 1084, the working assumption is 

that credit will not be provided based upon the SDR submission, but will instead be provided 

upon resolution with the completion of the applicable investigation and transfer to item manager 

ownership. This is not ideal from the owner’s perspective and does not mirror DLA processing 

for some PQDRs which authorize credit up-front. 

 

4) Validation of Three-Position Q-series Discrepancy Codes:

a) The quality-related receipt notification process uses the following code set: 

Q11 Returned or stock screen item, PQDR exhibit deficiency

Q22 New procurement receipt, customer return, redistribution order or stock 

 screen item quality deficiency, contractual non-compliance 

Q33 Returned, redistribution order, or stock screened item suspected materiel 

 deficiency (DLA Customer Returns Improvement Initiative (CRII) 

items only) 

Q44 New procurement receipt, customer return, redistribution order or stock 

 screen item contracting deficiency, for specification and/or 

technical data deficiency 

Q55 Item under investigation 

Q66 Customer return or stock screen item failed under use 

Q77 New procurement receipt, customer return, or redistribution order receipt 

of stock screen item identified as a suspected critical safety item (CSI) 

discrepancy 

b) Ms. Hilert asked for validation of the above code set, including determination 

 whether any of the codes could be consolidated/eliminated or further clarified. Mr. Jason 

 Kyle, DLA Distribution, suggested that Codes Q22 and Q44 could be combined. He 
questioned whether separate codes are still needed for SDRs applicable to customer 

returns improvement initiative (CRII) and critical safety item (CSI) receipt (Codes Q33 

and Q77). 

Action: DLA Distribution and DLA tech quality team research for consensus on code 

updates. 

c) The original read-ahead materiels did not include receipt notification SDRs using 

Discrepancy Code Q 11. The business process is different for these since a separate 

action may not be needed to transfer ownership to the item manager. Instead, when the 

PQDR exhibit is directed to the storage activity, it is intended to be receipted to the item 

manager. However, this is not always the case and some exhibit receipts, e.g. those 

lacking a preposition materiel receipt (PMR), are receipted to the Service of the returning 

activity. Ms. Hilert recommended that the routing logic for these also be modified to 

always direct the SDR to the item manager. Ms. Hilert will evaluate if the Ql 1 

discrepancies should be addressed using a separate Proposed DLMS Change (PDC). 

5) Flow Diagram (Enclosure): Ms. Hilert and the participants discussed alternatives and 

improvements to the draft flow diagram. The Air Force asked for clarification of the follow-up 

process, particularly whether the recipient of the owner in receipt of the SDR information copy 

would need to initiate a follow-up. DLA clarified that this would be unlikely now that the DSS 

has been modified to systemically follow-up on open SDRs. Further discussion also clarified that 

the document number used for the SDR would likely not be the appropriate document number 

for processing the credit. Instead, the SDR reply from the item manager will ask the owner to 

provide the original requisition document number. If not available a constructed document 

number may be substituted by the owner. Action: DLMSO add the follow-up process into the 

flow diagram and update the flow to reflect the document number requirement for credit 

processing. This action is completed and reflected in the enclosure. 

D. Way Forward: Based upon consensus of those participating in the initial discussion, 

DLMSO will begin documentation of the PDC. However several key Service representatives 

were unable to participate in this discussion due to schedule conflicts. DLMSO welcomes any 

comments, concerns, or questions on the recommended process changes. 

£Jl~\~~6 ELLEN HILERT 

DOD SDR System Administrator 

Approve'-~~~~~~~ / 

DONALD C. PIPP 

Director 

Defense Logistics Management 

Standards Office 

Attachment, Page 3 
Yes

1

Receipt Restriction

requested by Item

Manager

6

SDR sent to manager as action a

Info copy sent to owner*

Restriction screen remarks

perpetuated to SDR remark

New SDR Action Code 4A requ

disposition from manager*

7

Manager provides

response to SDR ‐

Interim Response if

investigation is

ongoing

2

Materiel subject to Receipt

Restriction discovered

during Distribution Center

receipt

4

Is material

owner

different from

materiel

manager

requesting the

screening?

8

Investigation

completed ‐

Does

suspended

stock need to

be returned to

the manager?

15

Depot reports

receipt to

Manager per

PMR

13

Owner prepares MRO

for ship‐in‐place

No

Yes

3

Materiel

suspended

12

Manager

transmits PMR to

Distribution

Center for

directed return

11

SDR Reply from Manager

directs Owner to initiate

return materiel using ship‐

in‐place procedures***

and request DOCNOs to

be used for credit 

9

SDR Reply from

Manager directs

materiel be

upgraded to

original condition

16

Manager issue

credit using DOC

provided on ow

SDR reply

SDR closed ‐

No further

action

required

10

Depot issues Completion

Notice (CN) SDR to notify

all parties when action

completed

** * Note: Ship‐in place requires

owner‐prepared Materiel

Release Order (MRO) to

Distribution Center holding

materiel with ship‐to designated

as same Distribution Center.

Prepositioned Materiel Receipt

will ensure Center reports

receipt to the correct owner

14

Owner prepares SDR reply

confirming MRO sent and

providing DOCNOs for credit

**** Note: If original

document number

(DOCNO) used to

requisition the item

from DLA is available,

this is the DOCNO that

should be provided on

the SDR reply

Updates subsequent to May 7, 2014 meeting are highlighted in red.