The Nation’s Combat Support Logistics Agency

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Supply Process Review 

Committee

Defense Enterprise Data Standards Office (DEDSO)

August 25, 2021 - 0900 - 1200 EST.
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Agenda

2 Supply Team, DEDSO

August 25 , 2021

0900-0915 Welcome, Admin, & Introductions

Tonja Carter Administrator, DEDSO/Tad DeLaney, Director, DEDSO / DASD Log

0915-1000 Accountability Challenges in the Supply Chain for End Items under Contractor Repair

Tonja Carter/Rafael Gonzalez/Gail Fuller Administrators, DEDSO

1000-1015 BREAK

1015-1100 DoD Component Briefings

DLA Pseudo RICs

1100-1145 Segregation of Materiel by Purpose

Tonja Carter/Rafael Gonzalez/Gail Fuller Administrators, DEDSO

1145-1200 Wrap Up/Outstanding Changes Awaiting Responses

Tonja Carter/Rafael Gonzalez/Gail Fuller Administrators, DEDSO

Defense Enterprise Data Standards Office (DEDSO)

Defense IT Standards for Business Systems of the DoD Supply Chain
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Welcome, Introductions, and Remarks

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Accountability Challenges in the Supply 

Chain for End Items under Contractor Repair

BLUF:

To understand some of the challenges with maintaining accountability of end 

items while under contractor repair.

– What are the challenges Components are facing with the accountability of end items while 

under contractor repair?

– Components elaborate on how information is shared/exchanged between contractors and 

the government.

• What transaction formats are used?

• What workarounds are in place today?

– Any related NFRs/audit findings?

– Have the Components identified any procedural or policy gaps?

– Any challenges with part number changes due to contractor repair?

4 Supply Team, DEDSO

August 25 , 2021
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DoD Component Briefings

DLA Pseudo RICs

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Segregation by Purpose

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Segregate Materiel by Purpose

BLUF:

To understand the need for segregation of materiel in warehouses beyond the line item (NSN, 

Supply Condition Code, and Materiel Owner).

Background:

• The Air Force is using SDRs to segregate materiel at DLA warehouses causing a significant 

increase in suspended stock. The intent of SDRs is to report materiel discrepancies at time of 

receipt and not to segregate materiel. 

• Components are using pseudo RICs to segregate materiel at DLA warehouses. The intent of 

the RIC is to identify the Inventory Control Point (ICP)/materiel owner therefore, pseudo RICs 

are not a way to segregate materiel. In addition, DLA will no longer be able to support pseudo 

RICs under the DLA Warehousing System. 

• Current functionality is comprised of one alpha character and limited to intra Component 

use. In order to support current and future needs for materiel segregation, DEDSO is working on expanding the existing purpose code. The changes to the purpose will allow greater 

flexibility while supporting existing practices under legacy environments.

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Purpose Code Attributes

Current

• 1 Alpha character long

• Limited to intra-Component use

• Not equally implemented across 

DoD

• No Physical Segregation 

Proposed Future

• Variable length up to 6 alpha-numeric 

characters and dashes, no other special 

character or spaces

• Available for intra and inter Component 

use

• Current practices with a single 

character purpose code will not be 

affected

• Standard procedures

• Physical and Systemic Materiel 

Segregation 

• New process to assign purpose code 

via transactions

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Why segregate by purpose? Expanding the existing purpose code will 

enable all DoD storage activities to segregate materiel under an authorized 

materiel owner by a particular program/initiative, or purpose. 
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Materiel Owner vs Proposed Purpose Code

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Materiel Owner (QTY 7)

Purpose 

Code 3 

(QTY 2)

Purpose 

Code 2 

(QTY 3)

Purpose 

Code 1 

(QTY 2)

• The materiel owner will remain 

financially responsible for the assets 

therefore, storage activities will 

report and reconcile inventory 

records only with the materiel owner 

regardless of the purpose code.

• The materiel owner will be 

responsible to assign the purpose 

code, as necessary. 

• A materiel owner may use a 

purpose code to physically 

allocate/segregate materiel to 

identify a purpose, secondary 

ownership, or a program/initiative.
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Segregation of Materiel by Purpose Questions 

for Discussion

• What Components are using the purpose code and the ownership code? How 

are the Services using these codes today?

• Does the DoD need a way to further segregate materiel in storage?

• Pros and Cons of developing a new purpose code.

• Potential implementation challenges with segregating materiel in storage 

beyond the line item (NSN + Supply Condition Code + Materiel Owner).

10 Supply Team, DEDSO

August 25 , 2021
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Request For Information (RFI)- USMC 

Feedback

• Purpose Code/Ownership Code

– LOGCOM implemented the purpose code

• Specific program

• Utilization of asset

– Fleet management implemented the ownership code

• Used for proof of concept regarding MEF War reserve material

– Concerns identify GCSS-MC use of 5-digits purpose code

– LOGCOM functionality would have to be expanded to FLEET users

• Implementation Impact

– Modification of current business rules and implementation would be significant as GCSS and 

DOD/DLA/Marine Corps policy do not currently support this approach.

– USMC Policies would require modification

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Supply Team, DEDSO

August 25 , 2021
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RFI - AMC LMP Feedback

• Purpose Code/Ownership Code

– LMP current use the purpose and the ownership code for:

• Inventory stratification

• Valuation

• Used to identify a specific purpose of the inventory set aside

• Concerns on current Purpose Codes used in LMP

• Ownership Code is used to identify inventory owned by specific entity

• Both Ownership and Purpose Codes are used in conjunction with Project Codes

– Implementation Impact:

• LMP would have negative impact if ownership code was omitted

• Significant logic in LMP based on the Ownership/Purpose Code (OP)

• Concerns identified in requisitioning by Purpose Code causing errors

• TACOM-If the objective is that the Purpose Code is inter-component and no longer intra-component, what 

does "only the materiel owner will know what the purpose code value means" mean? If purpose codes are 

inter-component, then the purpose code should be the same for each service except for the Owner RIC

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Supply Team, DEDSO

August 25 , 2021
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Way Ahead for Next SPRC

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1. Should purpose code be a pre-defined value, defined in the DLM? (i.e TPFBRC)

2. Controls to prevent abuse of the purpose code. 

3. Should there be a limit on the amount of purpose codes per NSN, SCC, Owner 

combination?

4. Would there be a cost associated?

5. Examples where a purpose code can be beneficial for DoD metrics. 
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Wrap Up

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