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 Add capability to send attachments electronically 

 Develop access roles and levels automation in support of reports access 

 Upgrade IUID functionality 

b. Status of SDR Management Reports and Query Capability. Mr. Tim Holloway, 

DAASC provided a demonstration of the SDR Management Reports capability. Ms. Hilert 

emphasized that the reports can be reviewed from several vantage points to include Submitter, 

Action Activity, Owner/Manager and Shipper. She said that the most reliable choices are 

Submitter and Action Activity. Although Owner/Manager and Shipper are also available, many 

of the Component systems are not passing this information or passing erroneous information. 

The Reports function allows users to get current status or a complete history of a particular SDR 

and is a tool to improve future customer support that would result in fewer SDRs. She also 

indicated that all Components should think about what is required for reports and identify 

changes/additions to DLMSO. A definition the of selection by SDR Status Codes, as defined in 

the Reports Function, was passed out to the group and is available on the SDR subcommittee 

Web page (refer to the meeting agenda – Item 2). Those SDRs with an Action Code of 1H (No 

reply required. Information only.) and 3B (Discrepancy reported for corrective action and trend 

analysis. No reply required.) are included in Status Code Number 4 (Validated/Disposition 

Provided). Requests for access to the Reports Functions should be forwarded to the DAASC 

POC, Dawn Kohlbacher. Access is currently restricted for two reasons: we are still in the 

process of validated the report processing rules and accuracy; and, other than the current method 

of restriction by specific user ID, we do not have procedures for ensuring the users only have 

access to the appropriate level of information (e.g. some users/contractors sites should not have 

total DoD level access). Several changes will be made to the Reports and will be available in the 

near future. They include: the selection drop box list of Q Discrepancies will be broken out by 2 

and 3 digit codes; the ability to export a report to a spreadsheet; and the ability to search by 

mixed and unknown materiel identification and by FSC. A query which results in more than 

1000 records will produce an error message which indicates only first 1000 records will be 

shown. In the future a capability will be designed to allow a user to request a batch report 

overnight which will show all records. In the interim, the user can make the query smaller by 

restricting the date range or adding additional selection criteria. Ms. Hilert wants to provide the 

ability to search on CIIC Code, but emphasized it must be controlled and asked for suggestion on 

how this can be done. ACTION: ALL COMPONENTS provide ideas on how the CIIC search 

can be limited and controlled. She also asked that committee members prioritize changes 

required so that the most important ones can be done first. BUSINESS RULE 

CLARIFICATION: The effectiveness of the management reports is dependant upon the 

accuracy of the information contained in the SDR transactions. Ms. Hilert emphasized that reply 

activities must be able to update discrepancy codes when the original code was identified in error 

(e.g. customer selected discrepancy code and customer remarks are inconsistent). The reply 

must also carry vendor shipment data when the customer didn’t properly identify that the 

shipment as a direct vendor delivery (e.g. site document type 6 and minimally identify the 

contract number, shipment number, and vendor CAGE). In addition, systems must be able take 

in a 3 discrepancy codes. Some systems do not allow these capabilities and she said she would 

emphasize this requirement in the DLMS manual. DECISION: It was decided that on the 
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Report Detail only Discrepancy Codes that have SDRs will be displayed. The ability to search 

by wrong item materiel identification will be added. 

c. Cancellation of SDR Joint Component Instruction/Regulation/Manual. Ms. 

Hilert again briefed the committee on her plan to rescind the Joint Regulation on SDRs and 

replace it with DLMS Manual, Volume 2, Chapter 17. However, she said that Washington 

Headquarters will not allow the regulation to be cancelled without coordination by all 

Components. She will start the coordination process and hopes that all concur in the 

cancellation. She stressed that it is inefficient to expend resources to maintain two sets of SDR 

publications and the current regulation is very out of date. Subsequent to the meeting, Ms 

Hilert was authorized to update the DLMS manual chapter with previously approved DLMS 

changes. The manual had not been updated in the past year pending transition to a Defense 

Logistics Manual which will be more responsive to revisions. 

d. SDRs associated with Passive RFID Discrepancies. ADC 217. This ADC 

identifies new passive RFID (pRFID) discrepancy codes in the packaging/marking (300) series 

which is used to identify discrepant or missing pRFID on material and to identify reader 

problems/issues which interfere with pRFID processing of DoD receiving organizations. The 

procedures in the ADC support the monitoring of vendor performance. After implementation of 

the ADC, DLA was flooded with pRFID SDRs, to include 16,000 in March 2009. A DLAsponsored study to determine the causes of the high volume indicate that there are many roote 

causes to the problems encountered. The issues include: pFRID documentation may be 

confusing to suppliers and some have difficulty finding the documentation; DLA depots have 

sent invalid SDRs for missing tags when the DLA AIT failed to recognize a properly tagged 

shipment; DLA may have implemented imprecise RFID business rules; some suppliers have 

disregarded the requirement; and Receiving Reports/Advance Shipment Notices (ASN) are 

submitted/received after the shipment. Recommendations on improving the RFID 

implementation include: provide suppliers with easily understandable RFID requirements 

summary; establish time requirements for submission of ASN; request RFID tag vendors include 

“RFID” acronym on tags to better locate tags; and resolve reporting incongruities between 

depots. DLMSO is also supporting the DDC on concept development for a system change to 

hold back and re-check SDRs for missing ASN for 24-48 hours to allow time for the ASN to 

process. 

e. Army Interface – Status Update. Ms. Marsha Mcelroy-Paxton briefed the committee 

on the status of the Army Interface with WebSDR. Currently there is a one-way interface with 

WebSDR and the Army Electronic Product Support (AEPS) System for reports only. LMP has 

not programmed an interface with WebSDR and the changes required to implement the DLMS 

SDR format will not be reviewed again until 2011. In the interim, most changes to the AEPS 

application have been frozen. This leaves the interface between Army and WebSDR at an 

inefficient standstill for an extended period of time. Ms. Hilert suggested that this issue be raised 

at the monthly DLA, AMC meeting. She also suggested the Army explore other solutions that 

don’t require major enhancements to AEPS. For example, is it possible to implement a two-way 

UDF interchange between AEPS and WebSDR? ACTION: Army explore other alternatives to 

improving the AEPS/WebSDR interface. 
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f. Planning for Encryption of SDR E-mail Traffic. Ms. Hilert said that WebSDR 

SDRs have been designated for Official Use Only (FOUO) since 2006 and the encryption of 

FOUO e-mail has been required by DLA in 2008. On March 25, 2009 the DLA security office 

reviewed WebSDR and confirmed that SDRs meet OPSEC criteria for unclassified FOUO and 

therefore require encryption. The DLA security office has agreed to allow the continued 

operation of WebSDR until the e-mail SDR can be encrypted. The plan is to begin encryption 

for specific high volume DoD email users in July, 2009. In addition a message center approach 

will be developed which will allow e-mail users to access SDRs from their in-box account within 

the message center. Key information will be displayed in the subject line so that users can better 

prioritize workload prior to opening each SDR. A user can select SDRs for review or initiate 

further action directly from the message center. DAASC will have to adopt a dual transmission 

type: encrypted SDRs vs. “you’ve got mail” message. Encrypted SDRs will carry full data 

content plus a hyperlink to message center to facilitate web-based processing. Users without 

encryption capability will receive notification with a hyperlink indicating SDR e-mail is 

available in a new external web repository. There may also be an alternative reply format with 

limited content, such as document number and reply code with a POC. Significant areas of 

concern include a new communication approach for very low volume users that report 

discrepancies via the DLA Customer Interaction Center (CIC) which may require SDRs and 

replies to be mailed or place a increased burden on the CIC. Another concern is distribution 

copies of SDR for e-mail addresses that are not registered with DAASC to receive encrypted emails. DAASC is working on a POA&M to be completed in the near future. 

g. Use of WebSDR for Vendor Performance – intersection with WAWF advance 

planning to improve data quality. Ms. Hilert said that OSD is inquiring about the ability of 

WebSDR to capture the appropriate data elements to allow the monitoring of vendor 

performance on new procurement and direct vendor deliveries. The control numbers that are 

required to associate the discrepancy with a specific shipment are: Contract Number 

(Procurement Instrument/Instruction Identification (PIIN); Shipment Number; CLIN/SLIN; 

Call/Order Number Supplemental Procurement Instrument Identification Number (SPIIN). All 

of these data elements are available in different systems, but the system interfaces do not support 

the capture of the data for return to DoD WebSDR. Ms. Hilert indicated she would document 

data elements requirements. 

h. Update on IUID Workshop – Impact on SDR Reporting. Mr. Dale Yeakel, 

contractor support to DLMSO provided an update on the status of IUID. He said there have been 

several OSD/SCI lead logistics workshops to identify requirements that can be used as the 

framework for documenting and developing detailed business rules to enable use of IUID in 

logistics transactions/processes. Meetings have be held during March on Receipt and 

Discrepancy Reporting; Issue and Inventory. Discussion topics for additional workshops starting 

May include different levels of management intensity (e.g. inventory by unique item identifier 

(UII)) and development of a FLIS code to specify applicable IUID requirements; transition 

business rules on how to handle legacy controlled items that require a IUID but do not have one; 

reconciliation process to address UII mismatches at various levels; and determining the 

operational cost at the distribution depots. The logistics requirements/business rules will be 

developed through workshops and iterative, collaborative DLMS Process Review Committee 

proposed DLMS change (PDC) process. Champions from the Components will be identified to 
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document specific requirements to submit as PDCs. All DoD Components need to participate 

actively in the PDC development, coordination, and approval process. The PDC/ADC process 

will take place throughout FY 09 and FY 10. Systems changes and training requirements will be 

based on the OSD logistics policy and ADCs. There are several proposed new SDR 

requirements as a result of the use of IUID in the logistics processes. The scope of items may be 

expanded to include classified/sensitive (including Nuclear Weapons Related Material (NWRM), 

Army, Ammunition and Explosives (AA&E), and critical safety items. The UII will need to be 

systemically perpetuated on the SDR from the discrepant receipt regardless of the type of 

discrepancy (not just UII mismatch). Some UII discrepancies will require items to be received in 

a suspended condition pending resolution and certain items will have new time frames for SDR 

processing. Mr. Yeakel said that policy continues to evolve and that the latest policies and 

information on IUID can be found at: http://www.acq.osd.mil/dpap/pdi/uid/index.html. 

i. Base Realignment and Closure (BRAC) Impact on SDR Procedures. Jim Weiner, 

DDC J6-N briefed the committee on changes to SDR procedures as a result of BRAC 2005. Mr. 

Weiner provided an overview of the Navy and Air Force SDR process under BRAC. For the 

Navy, the industrial customer will not have the resources to submit SDRs, so the DLA Supply 

Department (former ship yard and Fleet Industrial Support Center (FISC) employees) will 

continue to submit and respond to SDRs as they have in the past. However the system for 

submitting SDRs will become DSS. The point of sale will be the physical exchange of the 

material. There are two touch points for submission of the SDR; the receipt into the industrial 

activity and the issue to the “Artisan.” DSS will be changed to support the submission of 

customer (type 6 and 7) SDRs. WebSDR will be required to provide info copies to the Product 

Data Reporting and Evaluation Program (PEDREP) and the Joint Deficiency Reporting System 

(JDRS) of reports and responses which will be used to trigger a replacement demand signal from 

MAT/MRPII. These changes are targeted for Jan 2011. Ms. Hilert emphasized that a PDC must 

be submitted to document these changes in the SDR procedures. She also offered the following 

comments; Slide 4, scenario 2A will require DAASC to send two info copies; one to the 

Owner/Manager and another one (party to receive) to PEDREP/JDRS.; Slide 5, scenario 3a 

could be supported by a new discrepancy code to identify a customer return which will result in 

exchanging one asset for another. The Air Force/DLA issue process in a two step procedure. 

The Air Force purchases materiel using an FB document number and resells to the industrial 

customer using an M-series document number. As a result, denials are on the M document 

numbers. The new process will require the Air Force to submit an SDR to DLA for material 

denied so credit can be processed. The depot will validate the SDR and forward to the ICP 

recommending credit. A change proposal is also needed to document WebSDR requirement to 

furnish additional info copies for forwarded SDRs and action activity responses. The 

implementation date is schedule for Aug 2009. ACTION: DLA (in coordination with the 

Military Service) submit PDCs to document revised SDR procedures under Air Force and Navy 

BRAC. 

j. DLA Continuous Process Improvement Initiative (CPI) Overview. Ms. Esther 

Wade, DLA HQs J-3, provided the group with an overview of the DLA SDR CPI. Ms. Wade 

told the committee that the DLA Process Review began in April 2008 with representatives from 

the Services, the DDC, the Supply Center, DLMSO, and was lead by a Master Black Belt. They 

review identified gaps in the SDR process; initiated corrective actions and used the Lean Six 
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Sigma Process to work through issues. The team focused on routing, response, finance and other 

areas, which included training for SDR processers and customers. Several process 

improvements have been implemented to include providing clear guidance for the return of 

wrong item shipments. The way ahead includes conducting Rapid Improvement Events to: 

establish guidance on closing SDRs and establishing measurable segments with the SDR 

process. 

k. Proposed DLMS Changes 

 (1) DRAFT PDC 314, GSA Directed Shipments. This PDC will establish 

procedures for processing and providing financial resolution/reimbursement for SDRs for total 

non-receipt of GSA directed shipments where proof of delivery to a CCP is available. Ms. Hilert 

indicated this PDC is ready to be staffed with all Components; however she is waiting for GSA 

agreement to proceed. 

 (2) PDC 331, Procedures for Prepositioned Materiel Receipt (PMR) and 

Shipment Status for Retrograde and Directed Discrepant/Deficient Materiel Returns. This 

PDC, which is under development, establishes business rules and resulting modifications to the 

DLMS 856R, Materiel Returns Shipment Status and the 527D, PMR to discretely identify a 

reason for a materiel return, require a matching PMR, and shipment status to the receiving 

activity. The PDC supports passive RFID and item unique identification requirements; has wide 

applicability including exchange of Depot Level Repairable (DLR), other retrograde shipments, 

Product Quality Deficiency Report (PQDR) exhibits, and discrepant materiel directed back on an 

SDR reply. Ms. Hilert indicated that this PDC will require feedback from all Components. 

 (3) PDC 336 Revised Business for NWRM SDRs. This PDC, which is under 

development, will provide guidance for SDR preparation of controlled/sensitive items inclusive 

of NWRM. At the time of the meeting, OSD/DLIS and the NWRM community had not 

determined how unclassified NWRM would be identified, causing a delay in publishing 

procedures based upon the OSD NWRM policy memo. The PDC will specify 24 hour reporting 

criteria and response time for SDRs (with an additional 15 days for expanded response if 

additional research is required). The 24 hour reporting time standard for receipt of 

controlled/sensitive items by Security Assistance customers (wrong item and misdirected 

shipments) has been established and expanded to include shortage, overage and UII/serial 

number missing/mismatched. In addition responses must be provided within 24 hours. Ms. 

Hilert indicated that the Components may want to provide comments on the timeframes when the 

PDC is released for staffing. 

l. Recent DLMS Approved Changes 

 (1) ADC 293, Revised Time Standards, Codes and Procedures for Reporting 

and Processing of Supply Discrepancies. This approved change adjusts time standards; 

updated SDR action and reply codes; added wrong item Controlled Inventory Item Code and 

Demilitarization Code to the SDR format and improved documentation. 
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 (2) ADC 317, Revised Business Rules for Transshipper-Prepared SDRs. 

This approved change supports the submission of transshipper prepared SDRs to report 

shipping/packaging errors. USTRANSCOM coordinated a May 9, 2009 (later slipped to May 

11) implementation date for aerial ports. Two new SDR actions codes will be implemented to 

distinguish SDRs requiring expedited response to resolve frustrated freight problems and those 

requiring no response, but which may be used by the action activity to correct 

shipping/packaging errors, recoup money from noncompliant vendors and identify trends. A 

time standard of 5 days has been established for SDRs requesting expedited response (Action 

Code 3A). DLMSO has recommended an expanded use of Action Code 3B (Discrepancy 

reported for corrective action and trend analysis. No reply required) beyond transshipper 

activities. Until system changes can be made to the receiving applications, DAASC will 

transmit email reports to DLA ICPs and Distribution Depots (with a copy to the Defense 

Distribution Center (DDC). Standard rules for SDR distribution will remain in effect for all 

other Services. A sample of the monthly “Canned Report” that will be available for the 

transshipper prepared SDRs was provided by DAASC. During the discussion about DSS 

creation of Consolidation and Containerization Point (CCP) SDRs, it was noted that the system 

doesn’t have capability to provide user-originated remarks. A systems change will be required 

in DSS to allow specific remarks to replace the pre-programmed “canned” remarks currently 

used. Ms. Hilert agreed to provide to all attendees a list DoDAACs for currently identified 

Aerial Ports. 

 m. Unimplemented DLMS Approved Changes 

 (1) ADC 256, WebSDR Transaction Edits: Forwarding and Follow-up 

Timeframes. This ADC provides three new edits to improve data quality and enforce existing 

business rules. Follow-up transactions will be edited to ensure that an appropriate time has 

elapsed before follow-ups can be submitted. Replies forwarding the original report to a new 

action activity may not be used to forward the Distribution Depot Receipt SDRs from the 

Material Owner to the Source of Supply. Replies requesting forwarding of the SDR to a new 

action activity may not be used to forward historical or other record types which lack full data 

content necessary to establish a basic SDR report transaction. 

 (2) ADC 268, Inclusion of Product Quality Deficiency Report (PQDR) 

Report Control Number (RCN) on security Assistance SDR Quality Related Reply. The 

ADC requires resolution of PQDRs provided via an SDR reply to the submitting ILCO, to 

identify the associated PQDR RCN as a cross reference to the PQDR identification used by the 

ICP/IMM. 

n. Other Discussion Topics. 

 (1) Debit/Credit Processing for Customers with Deleted DoDAACs. In 

response to discussion during the meeting, Ms Hilert subsequently asked the DLMSO Chair to 

contact the DoDAAC PRC and the Finance PRC to investigate the assignment of “replacement” 

DoDAACs and preferred procedures for issuing debit/credit to DoDAACs with effective deletion 

flags. The example identified during our SDR meeting for AF where a replacement DoDAAC 

was identified in a text area of the DoDAAC table was a rare exception (due to an error in the