OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE

3500 DEFENSE PENTAGON

WASHINGTON, DC 20301-3500

 SUSTAINMENT

MEMORANDUM FOR SUPPLY PROCESS REVIEW COMMITTEE

SUBJECT: Approved Defense Logistics Management Standards Change 1464, Segregation of 

Materiel Below Line Item (Supply)

The Defense Logistics Management Standards change, as outlined in the attachment, is 

approved for implementation.

Addressees may direct questions to Wes Best, e-mail: DEDSO.Supply@dla.mil. Others 

must contact their designated PRC representative available at https://www.dla.mil/

Defense-Data-Standards/Committees/Contacts/.

 

 Leigh E. Method, SES

Deputy Assistant Secretary of Defense 

 for Logistics

Attachment:

As stated

cc:

OUSD (C)

DLA J6DS
Attachment, ADC 1464

Page 1

Approved Defense Logistics Management Standards Change (ADC) 1464

Segregation of Materiel Below Line Item (Supply)

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Technical POC: Nidal M. Deeb, U.S. Navy, email: Nidal.M.Deeb.civ@us.navy.mil

b. Functional POC: Wes Best, Defense Enterprise Data Standards Office (DEDSO), 

email: DEDSO.Supply@dla.mil

2. REASON FOR CHANGE: 

a. Bottom Line Up-Front: Substantive updates made after staffing are identified in 

green highlighting.

This change enables materiel owners to segregate materiel both physically and 

systemically, by stock allocation reference upon request. While the value of the stock allocation 

reference is service specific, DEDSO will define the business rules and attributes of this data 

element. The intent of this change is for storage activities to leverage the batch process to drive 

physical segregation (similar to shelf-life) but keep accountability of the materiel by line item. 

For context, the line item is the combination of national stock number (NSN), supply condition 

code, and materiel owner. 

b. Background: 

(1) Naval Air Systems Command (NAVAIR) materiel being stored at Defense 

Logistics Agency (DLA) is primarily Support Equipment (SE) and Aircraft Launch and 

Recovery Equipment (ALRE). The equipment is not part of the supply system for Naval Supply 

Systems Command (NAVSUP) or DLA to fill fleet requisitions. The SE is procured for the 

purpose of future site activation of a type of model series aircraft squadron. The majority of SE is 

known as Peculiar Support Equipment (PSE), its use is specific to supporting that type of model 

series of Navy aircraft, or the systems installed on that aircraft. 

(2) The ALRE is procured and stored for future install on Navy ships or aircraft 

carriers. The ALRE performs a specific function, such as aiding pilots while taking off or 

landing, launching, or recovering an aircraft from an aircraft carrier. Both SE and ALRE are

procured using specific budget line-item funding that needs to be accounted for by the program 

office or program management activity (PMA) from an audit readiness perspective. Both the SE 

and ALRE are classified as general equipment and must be tied back to the PMA that procured 

it. Since the equipment is purchased by the individual PMAs, it needs to remain under the 

cognizance of that PMA for accounting to meet budget and Financial Improvement and Audit 

Remediation (FIAR) requirements. 

(3) PMAs need to have visibility of what they have in storage at DLA to be able 

to react to changing requirements – to include imminent or ongoing conflicts. The SE is used to 

conduct maintenance on Navy aircraft, as such, there are times when the PMAs may need to 
Attachment ADC 1464

Page 2

change aircraft site activation schedules or the location where a squadron needs to be located. 

Knowing what SE and/or ALRE they have, and the quantities, drives the decision process. 

(4) Within a family of an aircraft, there are multiple model configurations, such 

is the F-18A through G aircraft. The multiple configurations may use the same item(s) of SE,

but the SE was procured by the PMA using different types of funding (e.g., Aircraft 

Procurement, Navy, Research & Development, and Procurement, Navy ) so those items need to 

be separated by the type of model series, as they were procured to ensure proper accountability.

(5) For the above listed reasons, DoD needs to have the ability to segregate the 

items by program owner, which is currently being done using pseudo routing identifier codes

(RICs).

3. CHANGE IN DETAIL: 

(1) Define purpose code Z as an inter-component code, specifically for the 

segregation of materiel below line item when used in combination with the stock allocation 

reference. Further segregation is required by the materiel owner/ICP to reserve inventory for a 

specific reason or purpose. 

(2) Add new qualifier for the N9/REF segment SLI Secondary Location 

Identifier code to all balance affecting transactions and the pre-positioned materiel receipt (PMR) 

to ensure the stock allocation value can be conveyed when reporting to the materiel owner. The 

materiel at the warehouse may not be physically marked with the stock allocation reference. 

However, the materiel will be treated as a separate batch and segregated from others alike, such 

as shelf-life materiel with different expiration dates. 

(a) The stock allocation reference (SK) is defined by materiel owners but 

cannot exceed 6 alpha/numeric characters. Materiel owners may use dashes (-). No other 

special characters or spaces are allowed. 

(b) Materiel segregated by the stock allocation reference will not be 

available for stock replenishment and can only be issued using a materiel release order (MRO). 

The MRO and the materiel segregated must match by NSN, supply condition code, materiel 

owner, and stock allocation reference. 

(c) When the materiel owner requires this type of segregation, they must 

provide a PMR citing purpose code Z and the stock allocation reference value. 

(3) The intent of the stock allocation reference is to enable materiel owners to 

segregate materiel below line item without significant impact to storage activities and their 

footprint. Materiel owners must ensure segregation of materiel by stock allocation reference is 

not abused as it can cause an increase in storage cost and affect the overall warehouse capacity to 

store the materiel. 

(4) New qualifier SLI Secondary Location Identifier will be available in the 

following Defense Logistics Management Standards (DLMS) transactions: 
Attachment ADC 1464

Page 3

(a) DLMS 527D Due-in/Advance Receipt /Due Verification

(b) DLMS 527R Receipt

(c) DLMS 867I Issue

(d) DLMS 940R Materiel Release

(e) DLMS 945A Materiel Release Advice

(f) DLMS 947I Inventory Adjustment

(5) Use the Ship-In-Place process to segregate materiel by a stock allocation 

reference for materiel already in storage. The materiel owner must provide a PMR with purpose 

code Z and the stock allocation reference. In addition, the materiel owner will transmit a DLMS 

940R Materiel Release. When segregating materiel already in storage, do not include the stock 

allocation reference in the MRO as it can cause a denial. 

(a) Once the MRO and the PMR are transmitted by the materiel owner, 

the storage activity will process a re-warehouse action using the stock allocation reference from 

the PMR to stow the materiel. The storage activity will create the relationship between the 

materiel owner, warehouse location, and stock allocation reference. 

(b) Once the re-warehouse action is complete, the storage activity 

transmits a DLMS 945A and a DLMS 527R Receipt transaction to the materiel owner to ensure 

inventory balances align and the stock allocation reference is recorded properly. 

a. Revised Transaction Flow: 

(1) Materiel owner transmits a DLMS 527D PMR with the appropriate secondary 

owner. 

(2) At time of receipt, when the stock allocation reference is present in the PMR, 

the storage activity will treat the materiel as a new batch, record the stock allocation reference

during the receipt process, and stow it in a new location. The materiel must be stored in a new 

location unless an existing location matches the materiel receipted by line item and stock 

allocation reference.

(3) While the materiel is segregated by a stock allocation reference, the storage 

activity will not use it to replenish other locations. The materiel can only be issued out via the 

DLMS 940R materiel release order (MRO). The MRO must include the stock allocation 

reference to avoid the issue of materiel alike.

(4) The stock allocation reference must always be associated to a valid materiel 

owner RIC. The materiel owner is responsible for the materiel regardless of the stock allocation 

reference. Storage activities will report all balance affecting actions against materiel segregated 

by a stock allocation reference to the appropriate materiel owner. 
Attachment ADC 1464

Page 4

(5) Storage activities implementing this change must ensure to retain a 

relationship between the location of the materiel, the materiel owner RIC, and the stock 

allocation reference. This will ensure MROs can be properly fulfilled with the correct materiel. 

(6) The storage activity will report all balance affecting transactions to the 

materiel owner, regardless of the stock allocation reference. In the transmission, the storage 

activity must include the stock allocation reference. 

(7) The materiel owner must transmit a DLMS 940R MRO transaction to the 

storage activity and request the release of the materiel previously segregated by secondary 

owner. The MRO must include the secondary owner otherwise, the storage activity will follow 

standard order fulfillment procedures. 

(a) If the storage activity is unable to find the materiel segregated by the 

secondary owner, the release order will be denied via the DLMS 945A Materiel Release Denial

and the appropriate management code. 

(b) Upon successful match of the secondary owner, the storage activity

completes the release order in accordance with standard procedures. Once the quantity stored for 

that secondary owner has been exhausted, the storage activity will not retain the secondary 

owner value. 

4. IMPLEMENTATION TARGET: At a minimum, the Navy Staging Facility Inventory 

Management System (SFIMS) and DLA Warehousing Management System (WMS) will need to 

implement this change. At the time of this ADC, SFMIS cannot accept or transmit any 

DLMS/Legacy MILS transaction; however, Navy is currently working to implement the 

appropriate transactions to ensure proper accountability of materiel. The target implementation 

date for SFIMS is January 2025. 

5. TECHNICAL IMPACT: 

a. Additions or Changes to Data Dictionary: Secondary Location. See Enclosure 2 to 

update Implementation Conventions. Update transaction mapping to incorporate the new 

qualifier SLI Secondary Location Identifier code. The stock allocation reference (secondary 

location) is an optional data element used to segregate materiel below line item by a user defined 

alphanumeric value. The stock allocation reference may be a minimum of 1 alphanumeric 

character up to 6 alphanumeric characters, dashes are allowed but no special character or space is 

to be added to the data element definition; materiel owners may use dashes (-). When present, 

the materiel owner will require further segregation at the storage activity both physically and 

systemically. Transactions impacted are listed under section 3.b.5. Depending upon the impacted 

transaction, the qualifier and data will be in the REF or N9 segment.

b. Automated Information Systems (AIS): This change will impact any accountable 

property system of record required to segregate materiel physically and systemically by stock 

allocation reference. At a minimum, the DLA WMS will need to implement this change.
Attachment ADC 1464

Page 5

c. Defense Automatic Addressing System (DAAS): Update transaction mapping 

and/or routing as appropriate to incorporate the new qualifier SLI Secondary Location Identifier 

code. Transactions impacted are listed under section 3.b.5.

d. Navy Staging Facility Inventory Management System (SFMIS): The Staging 

Facility Inventory Management System (SFIMS) is being modified to transact with WMS. The 

process has started and is planned to transact through Navy Logistics Management Standards

(NLMS) to produce DLMS compliant transactions. NAVSUP will be involved to continue 

development on the necessary codes to transact through NLMS to WMS. It is anticipated that 

transactions with WMS will be ready by January 2025. Once the PDC is approved and WMS 

identifies the field that will be used to segregate the materiel to the program, that information 

will be used to modify NLMS to use this field along with SFMIS.

6. PUBLICATION/POLICY IMPACT: 

a. Defense Logistics Manual (DLM) 4000.25: 

(1) Volume 2, Supply Standard and Procedures, Chapter 4 Requisitions. See 

Enclosure 1.

(2) Volume 2, Supply Standard and Procedures, Chapter 12, Due-In and PrePositioned Materiel Receipt. See Enclosure 1. 

(3) Volume 2, Supply Standard and Procedures, Appendix 2.4 Purpose Codes. 

See Enclosure 1.

b. Non-DLM 4000.25 Publications: None.

7. ASSUMPTIONS: None.

8. FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION (FIAR), MATERIAL 

WEAKNESS, AND AUDIT-RELATED INFORMATION: 

a. Notices of Findings and Recommendations (NFR): None.

b. Corrective Action Plan (CAP) References: None.

c. Other FIAR, Material Weakness, and Audit-Related Information: None.

9. END-TO-END TESTING REQUIREMENTS: None.

10. REFERENCES: None. 
Attachment, ADC 1464

Page 6

11. PROPOSED DLMS CHANGE (PDC) 1464 RESPONSE/COMMENT RESOLUTION:

Component Response/Comment Disposition

1. US Air Force Concurs without comment. DEDSO acknowledges and accepts

2. US Army No comments received. No response represents concurrence.

3. USMC Concur without comment. DEDSO acknowledges and accepts

4. US Navy Concurs as written. DEDSO acknowledges and accepts

5. DLA Concurs with comments:

1. DLA will not implement this 

ADC in transactions going to or 

from EBS. We have no intent to 

segregate stock by Stock 

Allocation Reference.

2. This storage capability does not 

impact how DLA Disposition 

Services stores inventory. Will 

need to monitor how this would 

change in WMS for Distribution 

and no ramification to the 

functionality of Disp Svcs. 

Concur with J345's uploaded 

comments on ensuring WMS is 

fully functional before 

implementing this change.

3. With the exception of the DLMS 

527D, it would appear DEDSO 

has accommodated this 

requirement with the OW -

Owner of Property/ or Unit. Is 

there a need for a new element 

"SK"?

4. If the decision is to proceed with 

this PDC, for N103, must it be 10 

(DoDAAC), or M4 (RIC)

5. Another option may be to expand 

ADC 1379 to additional ICs as 

required. - Warehouse Project 

Code (Industry Code P4)

6. What controls are in place to 

ensure" Materiel owners must 

ensure segregation of materiel by 

stock allocation reference is not 

abused as it can cause an increase 

in storage cost and affect the 

overall warehouse capacity to 

DEDSO acknowledges and accepts all

DLA comments listed below. 

1. Noted. DEDSO agrees. 

2. Noted. Disposition Services doesn’t 

perform receipts on behalf of other 

services, therefore, there should be 

no impact to Disposition Services, 

especially since DLA EBS will not 

be implementing per comment #1. 

3. Noted. The new qualifier does not 

replace the Materiel Owner in the 

PMR. SK allows the materiel 

owner to further segregate materiel 

under his/her ownership as 

necessary. Any further segregation 

will not affect/change the materiel 

owner. Ultimately the materiel 

owner is who financially owns the 

materiel. 

4. Noted. Recent changes moved the 

new qualifier from the N1 segment 

to the N9 so there is no need for 

changes in N103. 

5. Noted. After further research, 

DEDSO determined that ADC 1379 

cannot be expanded as suggested. 

The Warehouse Project Code and 

the stock allocation reference share 

some similarities but cannot be used 

the same way. 

6. Noted. As stated in the change, 

materiel owners are responsible for 

making sure this process is not 

abused as it could impact DLA 

distribution centers and their 

footprints. At the time of this 

change, Services who are interested 

on proceeding with implementation, 
Attachment ADC 1464

Page 7

store the materiel."? This change 

could increase the footprint of 

DLA Distribution warehouses 

significantly due to the sub 

segregation by project and not 

simply by owner/NSN/Condition.

7. "At a minimum, the DLA 

Warehousing Management 

System will need to implement 

this change. “ DLA would only 

consider investing the programing 

effort and cost to update WMS 

and will not update DSS to 

accomplish this PDC. DLA 

would need to know the Navy 

expectation on when they would 

expect this to be accomplished.

8. This change request will require 

component systems to 

systemically transmit data to 

WMS. Will the Navy be able to 

update their system of record 

when DLA has programed WMS

already have this materiel in DLA 's 

custody and segregated by a 

pseudo-RIC. 

7. Noted. DEDSO, in coordination 

with Navy, updated the change with 

implementation timelines and all 

systems known to have some level 

of impact. 

8. Noted. Navy is currently 

implementing the appropriate 

DLMS transactions to ensure their 

system can communicate with 

WMS as intended.

6. DAAS Concur without comment. DEDSO acknowledges and accepts.

7. FAA Concur without comment.

Comment: No impact to the FAA IFS 

system.

DEDSO acknowledges and accepts

8. USTRANSCOM Abstain. DEDSO acknowledges and accepts
Enclosure 1, ADC 1464

Page 1

Enclosure 1

A. Revised Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards and 

Procedures, Chapter 4 Requisitions as follows:

Make the following changes to Volume 2. Additions are shown in red bold italics. Deletions are 

shown by double strikethrough text.

C4.7.14.6. Segregation of Materiel below Line Item. Materiel owners may 

segregate materiel they own using a stock allocation reference. The stock 

allocation reference is defined by each materiel owner. However, the stock 

allocation reference cannot exceed 6 alpha-numeric characters. The value may 

contain dashes but no other special character. 

C4.7.14.6.1. Segregating Materiel using the PMR. To segregate by a 

stock allocation reference, the materiel owner must transmit a pre-positioned 

materiel release transaction to the storage activity prior to the receipt process. 

The PMR must cite the materiel owner RIC, and the stock allocation reference to 

force the materiel receipted to be segregated in a separate location. 

C4.7.14.6.2. Release of Materiel Segregated using the MRO. To 

release materiel segregated by the segregated reference, the materiel owner will 

transmit a DLMS 940R Materiel Release transaction to the storage activity. The 

Materiel release transaction must include the stock allocation reference. The lack 

of the stock allocation reference in the MRO will cause a denial. 

B. Revised Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards and 

Procedures, Chapter 12 Due-In and Pre-Positioned Materiel Receipt as follows:

C12.3.7. Segregating Materiel using the PMR. To segregate by a stock 

allocation reference, the materiel owner must transmit a pre-positioned materiel 

release transaction to the storage activity prior to the receipt process. The PMR 

must cite the materiel owner RIC, and the stock allocation reference to force the 

materiel receipted to be segregated in a separate location. To release the 

materiel segregated, the materiel owner must transmit an MRO citing the stock 

allocation reference. See chapter 4, Requisitions for additional details. 
Enclosure 2, ADC 1464

Page 1

Enclosure 2

Revise the following DLMS Implementation Conventions (ICs) as shown.

Changes are identified by bold italics and deletions by single strikethrough text.

# Location DLMS 527R Receipt Reason

1. DLMS

Introductory Note

Add ADC to DLMS Introductory Note 7 to add:

- ADC 1464, Segregation of Materiel Below Line Item (Inventory 

Management)

Identifies the IC as 

modified by this 

change.

2. 2/N901/030 Add new code SLI and DLMS Notes as follows: 

SLI Secondary Location Identifier

DLMS Note: 

1. Use in combination with purpose code Z to request further 

segregation below line item. SK cannot exceed 6 alpha/numeric 

characters.

2. A local code ‘SLI’ is established for use in the 527R, version 

4010. A data maintenance action has been submitted for 

establishment of ‘SLI- Secondary Location Identifier’ in a future 

version. SK for stock allocation reference in Warehouse 

Management System (WMS) to identify the secondary 

owner/address of materiel.

Add required 

capability.

# Location DLMS 527D Due-in/Advance Receipt /Due Verification Reason

1. DLMS

Introductory Note

Add ADC to DLMS Introductory Note 7 to add:

- ADC 1464, Segregation of Materiel Below Line Item (Inventory 

Management)

Identifies the IC as 

modified by this 

change.

2. 2/N901/0300 Add new code SLI and DLMS Notes as follows: 

SLI Secondary Location Identifier

DLMS Note: 

1. Use in combination with purpose code Z to request further 

segregation below line item. SLI cannot exceed 6 alpha/numeric 

characters. 

2. A local code ‘SLI’ is established for use in the 527D, version 

4010. A data maintenance action has been submitted for 

establishment of ‘SLI- Secondary Location Identifier’ in a future 

version. SK for stock allocation reference in Warehouse 

Management System (WMS) to identify the secondary 

owner/address of materiel.

New data element to 

carry the stock 

allocation reference. 
Enclosure 2, ADC 1464

Page 2

# Location DLMS 940R Materiel Release Reason

1. DLMS

Introductory Note

Add ADC to DLMS Introductory Note 7 to add:

- ADC 1464, Segregation of Materiel Below Line Item 

(Inventory Management)

Identifies the IC as 

modified by this 

change.

2. 2/N901/0400 Add new code SLI and DLMS Notes as follows: 

SLI Secondary Location Identifier

1. Use in combination with purpose code Z to request further 

segregation below line item. SK cannot exceed 6 alpha/numeric 

characters. 

2. A local code ‘SLI’ is established for use in the 940R, version 

4010. A data maintenance action has been submitted for 

establishment of ‘SLI- Secondary Location Identifier’ in a future 

version. SK for stock allocation reference in Warehouse 

Management System (WMS) to identify the secondary 

owner/address of materiel.

Add required 

capability.

# Location DLMS 867I Issue Reason

1. DLMS

Introductory Note

Add ADC to DLMS Introductory Note 7 to add:

- ADC 1464, Segregation of Materiel Below Line Item (Inventory 

Management)

Identifies the IC as 

modified by this 

change.

2. 2/REF01/030 Add new code SLI and DLMS Notes as follows: 

SLI Secondary Location Identifier

1. Use in combination with purpose code Z to request further 

segregation below line item. SK cannot exceed 6 alpha/numeric 

characters. 

2. A local code ‘SLI’ is established for use in the 867I, version 

4010. A data maintenance action has been submitted for 

establishment of ‘SLI- Secondary Location Identifier’ in a future 

version. SK for stock allocation reference in Warehouse 

Management System (WMS) to identify the secondary 

owner/address of materiel.

New data element to 

carry the stock 

allocation reference.
Enclosure 2, ADC 1464

Page 3

# Location DLMS 945A (4030) Materiel Release Advice Reason

1. DLMS

Introductory Note

Add ADC to DLMS Introductory Note 7 to add:

- ADC 1464, Segregation of Materiel Below Line Item 

(Inventory Management)

Identifies the IC as 

modified by this 

change.

2. 2/N901/0500 Add new code SLI and DLMS Notes as follows: 

SLI Secondary Location Identifier

1. Use in combination with purpose code Z to request further 

segregation below line item. SK cannot exceed 6 alpha/numeric 

characters. 

2. A local code ‘SLI’ is established for use in the 945A, version 

4030. A data maintenance action has been submitted for 

establishment of ‘SLI- Secondary Location Identifier’ in a future 

version. SK for stock allocation reference in Warehouse 

Management System (WMS) to identify the secondary 

owner/address of materiel.

Add required 

capability.

# Location DLMS 945A (4010) Materiel Release Advice Reason

1. DLMS

Introductory Note

Add ADC to DLMS Introductory Note 7 to add:

- ADC 1464, Segregation of Materiel Below Line Item 

(Inventory Management)

Identifies the IC as 

modified by this 

change.

2. 2/N901/0400 Add new code SLI and DLMS Notes as follows: 

SLI Secondary Location Identifier

1. Use in combination with purpose code Z to request further 

segregation below line item. SK cannot exceed 6 alpha/numeric 

characters. 

2. A local code ‘SLI’ is established for use in the 945A, version 

4010. A data maintenance action has been submitted for 

establishment of ‘SLI- Secondary Location Identifier’ in a future 

version. SK for stock allocation reference in Warehouse 

Management System (WMS) to identify the secondary 

owner/address of materiel.

Add required 

capability.
Enclosure 2, ADC 1464

Page 4

# Location DLMS 947I (4030) Inventory Adjustment Reason

1. DLMS

Introductory Note

Add ADC to DLMS Introductory Note 7 to add:

- ADC 1464, Segregation of Materiel Below Line Item 

(Inventory Management)

Identifies the IC as 

modified by this 

change.

2. 2/N901/0400 Add new code SLI and DLMS Notes as follows: 

SLI Secondary Location Identifier

1. Use in combination with purpose code Z to request further 

segregation below line item. SK cannot exceed 6 alpha/numeric 

characters. 

2. A local code ‘SLI’ is established for use in the 947I, version 

4030. A data maintenance action has been submitted for 

establishment of ‘SLI- Secondary Location Identifier’ in a future 

version. SK for stock allocation reference in Warehouse 

Management System (WMS) to identify the secondary 

owner/address of materiel.

Add required 

capability.