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 1414A, Implementation 

of the Distribution Center Number in the Defense Logistics Management Standards 

940R Materiel/Disposal Release Order Transaction

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

approved for implementation. 

Addressees may direct questions to Ben Breen, e-mail: DEDSO.SDR@dla.mil. Others 

must contact their designated Process Review Committee representative available at 

https://www.dla.mil/Defense-Data-Standards/Committees/Contacts/. 

Leigh E. Method, SES 

Deputy Assistant Secretary of Defense 

for Logistics

Attachments:

As stated

cc:

OUSD(C)

DLA J6D
Attachment ADC 1414A

Page 1 

Approved Defense Logistics Management Standards Change 1414A

Implementation of the Distribution Center Number in the Defense 

Logistics Management Standards 940R Materiel/Disposal Release 

Order Transaction

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: Defense Logistics 

Agency (DLA), Logistics Operations, Steven Nace, (571) 477-4194, Steven.Nace@dla.mil. 

2. REASON FOR CHANGE: Changes from the proposed to approved change are identified in 

green shade text. 

a. Bottom Line Up-Front: 

(1) This approved change replaces Proposed Defense Logistics Management 

Standards (DLMS) Change (PDC) 1414 (Implementation of the Distribution Center Number in 

the DLMS 940R Materiel/Disposal Release Order) in its entirety. This change incorporates a 

new qualifier, AEM, Distribution Center Number (DCN), in the DLMS 940R Materiel Release 

Order (MRO)/Disposal Release Order (DRO) transaction to associate the physical location of 

specific suspended discrepant materiel with the MRO. The new qualifier addresses a critical gap 

in the DLMS 940R Materiel Release transaction received at DLA Distribution Centers intended 

for specific suspended discrepant related materiel. This change must be implemented by other 

storage activities that process MRO/DROs for discrepant materiel.

(2) This change also requires DoD storage activities to prepare a DLMS 945A 

Materiel Release Denial and send it to the source of supply for Supply Discrepancy Reports 

(SDR) when the MRO/DRO containing the SDR DCN does not match any of the DCNs on the 

storage activity accountable record. 

b. Background: 

(1) Adding the DCN to the DLMS 940R, and into the DLA Warehousing 

Management System (WMS) logic, will ensure the correct suspended discrepant materiel is 

selected during the pick process resulting in less human error. This advantage does not apply to 

Distribution Centers that continue to use DLA Distribution Standard System (DSS). 

(2) This change will ensure that only the exact item associated with an SDR 

within a DLA Distribution Center is picked when directed by the Inventory Control Points (ICP). 

This will drastically reduce the potential for mis-picks of materiel not intended for release under 

a specific 940R MRO/DRO transaction. This advantage does not apply to Distribution Centers 

that continue to use DSS. 
Attachment, ADC 1414A

Page 2 

3. CHANGE IN DETAIL: 

a. Technical Details: 

(1) This change authorizes a new qualifier, AEM, DCN, in the DLMS 940R 

MRO/DRO transaction to assist with the suspended discrepant materiel located at a storage 

activity. The DCN will assist with the identification and physical location of specific discrepant 

materiel suspended on an SDR awaiting a release order. 

(2) The DCN will be unique and will not exceed 20 alpha numeric character 

values. 

(a) For DLA Distribution, the DCN will not exceed 15 alphanumeric 

characters and consist of the SDR Type, Date, Sequence Number and Warehouse, associated to 

specific supply discrepancy or quality deficient materiel located in DLA Distribution Centers. 

The format of the DCN by character position is: 

(b) Other Components may use the same or a different syntax that does 

not exceed the 20 alpha numeric character limitation. The DCN must be unique and must 

correlate to the warehouse location where the discrepant materiel is located.

(3) The ICP may populate the DCN in the DLMS 940R transaction when 

directing the storage activity to release the discrepant or product quality deficient materiel. 

Pending full implementation of this change, Components will cite the DCN provided by the 

storage activity via the SDR process in the exception data of the MRO/DRO. Once 

implemented, Components will be able to use qualifier AEM in location 2/N901/0400 of the 

DLMS 940R Materiel Release transaction. 

(a) When the DCN in the MRO/DRO transaction matches with a 

discrepant or product quality deficient materiel center number, the warehouse system of record 

can direct their personnel to the exact location and complete the pick process successfully. 

(b) Components may provide the DCN in the MRO when directing the 

release of discrepant materiel suspended on an SDR. For Product Quality Deficiency Report 

(PQDR) exhibits suspended on an SDR at a storage activity, the MRO/DRO will contain the 

DCN provided by the storage activity in addition to the PQDR report control number (RCN). 
Attachment, ADC 1414A

Page 3 

(4) DoD storage activities will prepare a DLMS 945A Materiel Release Denial 

and send it to the source of supply for SDR exhibits when the MRO/DRO containing the SDR 

DCN does not match any of the DCNs on the storage activity accountable record.

b. Revised Transaction Flow: When materiel is discrepant or product quality deficient, 

the storage activity will follow the SDR/PQDR process and suspend the materiel awaiting 

resolution. A DCN will be generated by the warehouse system of record and assigned to the 

SDR. The DCN will need to be associated with the location of the discrepant materiel to ensure 

it is matched correctly with the release order. The storage activity may provide the DCN to the 

materiel owner ICP via the SDR process. The ICP will then populate the DCN in the 

MRO/DRO (either in the exception data or in the N9 segment). The warehouse system of record 

will match the release order and the location of the discrepant/product quality deficient materiel 

and direct personnel to the exact location to complete the pick process. Upon successful pick 

process, the storage activity will complete the order fulfillment process.

4. IMPLEMENTATION TARGET: DLA will move ahead with the implementation upon 

approval. Implementation and rollout of WMS will be conducted on a site-by-site basis in line 

with the current DLA WMS implementation schedule.

5. TECHNICAL IMPACT: 

a. Additions or Changes to Data Elements: Incorporate new qualifier AEM, see 

Enclosure 2 for details. 

b. Automated Information Systems (AIS): The following AISs at a minimum must be 

updated to reflect the procedures as described above upon approval: 

• Product Deficiency Reporting and Evaluation Program (PDREP) 

• General Services Administration (GSA) Vision

• DLA Warehouse Management System (WMS)

• Army Logistics Modernization Program (LMP)

• Air Force Security Assistance and Cooperation (AFSAC)

• Air Force Stock Control System Wholesale D035K 

• Air Force Integrated Logistics System Supply (ILS-S) 

• DLA Enterprise Business System (EBS) 

• Other supply systems directing MRO/DROs 

c. Defense Automatic Addressing System (DAAS): Incorporate new qualifier AEM, 

DCN, as stated in Enclosure 2. 

6. PUBLICATION/POLICY IMPACT:

a. Defense Logistics Manual (DLM) 4000.25: 

(1) DLM 4000.25 Volume 2, Supply Standards and Procedures, Chapter 4 

Requisitioning. See Enclosure 1.
Attachment, ADC 1414A

Page 4 

(2) DLM 4000.25 Volume 2, Supply Standards and Procedures, Chapter 16 

Disposition Services. See Enclosure 1. 

(3) DLM 4000.25 Volume 2, Supply Standards and Procedures, Chapter 17, 

Supply Discrepancy Reporting. See Enclosure 1. 

(4) DLM 4000.25 Volume 2, Supply Standards and Procedures, Chapter 21, 

Stock Readiness Program. See Enclosure 1. 

(5) DLM 4000.25 Volume 2, Supply Standards and Procedures, Appendix 2.6, 

Management Codes. See Enclosure 1.

b. Non-DLM 4000.25 Publications: There are no known non-DLM publications that 

require changes. However, DoD Components may need to update any local procedures as 

necessary to reflect the changes documented in this change.

7. ASSUMPTIONS: This change is intended to be implemented at each DLA Distribution 

Center in parallel with the implementation of DLA WMS. Distribution Centers that continue to 

use the DSS will not be using this functionality.

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

WEAKNESSES, AND AUDIT-RELATED INFORMATION: 

a. Notices of Findings and Recommendations (NFR): DLA-FIN-2021-WCF-044 

(ADVANA NFR ID: DLANFR-3977) - This change addresses the recommendations under 

Notice of Finding (NFR) FIN-2021-WCF-044 pertaining to proper traceability and evidential 

matter of supply discrepancy reports (SDR).

b. Corrective Action Plan (CAP) References: DLA-FIN-2021-WCF-044-01 

(ADVANA CAP Key: DLACAP-6555). 

c. Other FIAR, Material Weakness, and Audit-Related Information: N/A

9. END-TO END TESTING REQUIREMENTS: N/A

10. REFERENCES: Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards 

and Procedures.

11. PROPOSED DLMS CHANGE (PDC) 1414A RESPONSE/COMMENT 

RESOLUTION: 
Attachment, ADC 1414A

Page 5 

Component Disposition Response/Comment

1. DLA Concur. As noted.

2. Navy Concur with comment.

Comments:

1. Language within the PDC implies the Supply 

Discrepancy Report (SDR) Distribution Center Number 

(DCN) will be required for all Material Release Orders 

(MROs) or Disposal Release Orders (DROs). SUP 0441 

objects to the DCN being mandatory for all MRO/DROs. 

Instead, the SDR DCN should be optional and only utilized if 

the system component generating the MRO or DRO requests 

shipment of a specific asset or assets linked to an SDR DCN. 

If the system component does not require shipment of a 

specific asset or assets linked to an SDR DCN, the DCN shall 

not be required in the MRO/DRO. The following language 

changes are requested:

a. 3.a.(3). : The ICP will may populate the 

DCN in the DLMS 940R transaction when 

directing the storage activity to release the 

discrepant or product quality deficient 

material. The SDR DCN is only required 

when the system component generating the 

MRO/DRO requires shipment of a specific 

asset or assets. If the DCN is not provided, 

the shipping activity will fulfill the order 

using any available asset the meets the 

criteria of the MRO/DRO. Pending 

full...(continues on with no further 

suggested change)

b. 3.a.(3).(b): Components are required to may 

provide the DCN...

c. Enclosure 1, A, C4.7.14.1.4: ...account 

number. When directing material release 

orders to DLA, the material owner ICP 

must may include the distribution center 

number (DCN), provided by the storage 

activity via the SDR process. The DCN is 

only required when the system component 

generating the MRO/DRO requires 

shipment of a specific asset or assets. If the 

DCN is not provided, the shipping activity 

will fulfill the order using any available 

asset the meets the criteria of the 

MRO/DRO.

d. Enclosure 1, A, C4.7.14.1.5: For DLA 

ONLY, MROs directing the return...

DEDSO Response:

Updated as requested and 

agreed upon based on 

meeting with Navy on 

April 13th, 2023.
Attachment, ADC 1414A

Page 6 

Component Disposition Response/Comment

e. Enclosure 1, A, C4.7.14.1.8: MROs 

directing the return of SDR exhibits will

may include the....

2. Per 3.a.(3).(b), when a Product Quality Deficiency 

Report (PQDR) is linked to the suspended material, the 

PQDR Report Control Number (RCN) and DCN are both 

required qualifiers. For Navy, the PQDR RCN is a redundant 

qualifier since the SDR DCN would sufficiently specify the 

intended material to be shipped via the MRO/DRO 

transaction. As noted by DEDSO (B. Breen) this would 

likely not be used by systems other than DLA. Therefore, the 

PQDR RCN should be designated as optional. 

3. Air Force Concur. As noted.

4. Army No response. No response

5. USMC Concur. As noted.

6. DAAS Concur. As noted.

7. USTRANSCOM No response. No response.

8. GSA No response. No response.
Enclosure 1, ADC 1414A

Page 1 

ENCLOSURE 1

Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards and Procedures 

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

are shown by double strikethrough text.

A. Volume 2, Chapter 4 Requisitions

 C4.7.14. Preparing MROs

(Preceding text not shown) 

 C4.7.14.1.4. MROs directing return of discrepant/deficient materiel 

to vendors at vendor expense will include identification of the carrier and the carrier 

account number. When directing materiel release orders to DLA, the materiel 

owner ICP may include the distribution center number (DCN), provided by the 

storage activity via the SDR process. 

 C4.7.14.1.5. MROs directing the return of PQDR exhibits may 

include both the DCN provided by the storage activity and the PQDR report control 

number (RCN), if available.1

 C4.7.14.1.8. MROs directing the return of SDR exhibits will 

include the SDR distribution center number (DCN), if available.

 C4.7.17.4. Storage Activity Denials for SDR and PQDR Exhibits.

 C4.7.17.4.1. DLA sStorage activities will prepare the DLMS 945A 

Materiel Release Denial and send it to the source of supply for SDR and PQDR exhibits 

when the MRO containing the SDR DCN or PQDR RCN does NOT match any of the 

DCNs or RCNs on the storage activity RCN table at MRO allocation accountable 

record. 

 C4.7.17.4.2. When the DLMS 940R MRO contains the SDR DCN 

or PQDR RCN and the DCN or RCN DOES match an DCN or RCN on the storage 

activity RCN table accountable record, but the DCN or RCN in the bin location is not 

the expected DCN or RCN for the MRO, the DLA storage activity will prepare a DLMS 

945A MRD.

1 ADC 1169, DLA Distribution Center Denial Scenarios Associated with Product Quality 

Deficiency Report (PQDR) Exhibits. 
Enclosure 1, ADC 1414A

Page 2 

B. Volume 2, Chapter 16 Disposition Services

C16.4. SOURCE OF SUPPLY AND STORAGE ACTIVITY INTERFACE FOR 

DISPOSAL RELEASE ORDERS

 C16.4.1.1. DLMS 940R DROs directing the disposal of Supply 

Discrepancy Report (SDR) or Product Quality Deficiency Report (PQDR) exhibits will

may include the SDR distribution center number (DCN) or PQDR report control 

number (RCN), if available. If the SDR is associated with a PQDR exhibit, the 940R 

DRO must contain both the DCN and RCN.

 C16.4.4. Release Denial.

 C16.4.4.2. Disposal Release Denials for Supply Discrepancy 

Report (SDR) and Product Quality Deficiency Reports (PQDR) Exhibits.

 C16.4.4.2.1. DLA sStorage activities will prepare the DLMS 

945A Materiel Release Denial and send it to the source of supply for SDR and PQDR 

exhibits when the DRO containing the SDR DCN or PQDR RCN does NOT match any 

of the DCNs or RCNs on the storage activity RCN table accountable record at DRO 

allocation.

 C16.4.4.2.2. When the DLMS 940R DRO contains the SDR 

DCN or PQDR RCN and the SDR DCN or RCN DOES match an RCN on the storage 

activity RCN table accountable record, but the DCN or RCN in the bin location is not 

the expected DCN or RCN for the DRO, the DLA storage activity will prepare a DLMS 

945A Disposal Release Denial.

C. Volume 2, Chapter 17 Supply Discrepancy Reporting 

(Preceding text not shown) 

C17.3. PROCEDURES

 C17.3.12.1.4.2. DLA Distribution Center Returns and Transfers to 

DLA Disposition Services. SDR disposition instructions to DLA disposition centers may 

direct disposal or shipment of discrepant/deficient materiel to another location (e.g., 

return to a vendor) using the appropriate SDR reply code. This type of SDR disposition 

must be provided concurrent to transmission of the DLMS 940R Materiel Release 

Order, which includes the option to add the corresponding distribution center 

number (DCN), in accordance with MILSTRIP procedures in DLM 4000.25 Volume 2 

for clear audit history for inventory reporting. The DLMS MRO supports discrete 

identification of the carrier and the carrier account number to allow systemic recognition 
Enclosure 1, ADC 1414A

Page 3 

of this information and ensure the appropriate party is charged for the transportation of 

the nonconforming materiel.2 

D. Volume 2, Chapter 21, Stock Readiness Program

(Preceding text not shown)

 C21.4.9.3. In order to transfer ownership of the suspended materiel to the 

manager, the owner will provide a DLMS 940R Materiel Release Order (MRO) to the 

distribution center. The MRO must be formatted for shipment-in-place and should 

reflect the full quantity identified on the SQCR SDR. Upon processing of the associated 

receipt, the presence of the distribution center number (DCN) SQCR control number

in the PMR will trigger the generation of a correction to the SQCR SDR data by the 

distribution center. The SQCR SDR correction will cite Action Code 4B and indicate the 

quantity transferred to ownership of the manager. Upon successful processing of the 

receipt for the nonconforming materiel, the manager will provide credit to the owner 

under MILSBILLS procedures.

E. Volume 2, Appendix 2.6 - Management Codes

AP2.6.2. ISSUE RELATED TRANSACTIONS. Management codes are assigned

for use in MILSTRAP issue related transactions (DIC D7 Issues, DG Backorders, and 

DHA Demands) and MILSTRIP transactions (DIC Code A4 Referral Orders, A5_ 

Materiel/Disposal Release Orders, A6 Materiel/Disposal Release Denials, ACJ Disposal 

Release Cancellations, AE6 Supply status, AEJ Disposal Supply Status, AFJ Disposal 

Release Follow-ups, AGJ Reply to Disposal Release Cancellations, AKJ Disposal 

Release Cancellation Follow-ups, ARJ, ARK, and ARL Deposal Release 

Confirmations), and related release documentation (when applicable), as indicated 

below: CODE APPLICABLE DICS EXPLANATION

Q A6 Denied. Storage activity unable to 

match materiel release order to 

identified reference numbers for stock in 

storage. Requested stock cannot be 

released. 

(1) Unable to match the protection document 

number and job order number. Applicable to 

DLA Navy industrial activity support 

agreement.5 (2) Unable to match to the 

DTID Number. Applicable to DLA 

Disposition Services. 

(3) Unable to match requested Supply 

Discrepancy Report (SDR) distribution 

2 Refer to ADC 1164, Revise DLMS 940R Materiel Release and DLMS 945A Materiel Release 

Confirmation for Carrier Account Data Associated with Directed Return of 

Discrepant/Deficient Materiel and Procedures for use of the DLMS 940R when Directing 

Shipment of Discrepant/Deficient Materiel via Supply Discrepancy Report. 
Enclosure 1, ADC 1414A

Page 4

center number (DCN) or Product Quality 

Deficiency Report (PQDR) exhibit report 

control number (RCN) to storage activity 

record or physical location.
Enclosure 2, ADC 1414A

Page 1 

ENCLOSURE 2

Revise EDI X12 Implementation Convention (IC) as shown:

Additions are identified by bold italics. 

# Location DLMS 940R 4030 Materiel/Disposal Release Order 

Transaction

Reason

1. DLMS 

Introductory 

Note

Add ADC 1414A to DLMS Introductory note 7:

- ADC 1414A, Implementation of the Distribution Center

Number (DCN) in the DLMS 940R Materiel/Disposal 

Release Order Transaction

To identify DLMS change 

included in the DLMS IC 

2. 2/N901/0400 Add new qualifier and DLMS note as follows:

AEM Distribution Center Number 

DLMS Note: 

1. Must be used by the materiel owner ICP to identify the 

Distribution Center Number (DCN) in N902 when directing

storage activities to release discrepant/quality deficient 

materiel. 

2. Perpetuate value from the DLMS 842A/W, 2/REF02/0700 

with Qualifier NN in 2/REF01/0700. 

3. DCN must not exceed 20 alphanumeric characters.

New qualifier to 

incorporate the distribution 

center number into the 

DLMS 940R to associate 

the physical location of a 

specific discrepant or 

product quality deficient 

materiel with the MRO.