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CHARTER FOR
THE DEPARTMENT OF DEFENSE (DoD)
SUPPLY DISCREPANCY REPORT (SDR) PROCESS TRANSFORMATION INITIATIVE
INTEGRATED PROCESS TEAM (IPT)

OVERVIEW:

1. Per DoD 4000.25-M, Defense Logistics Management System (DLMS), Volume 2, Chapter
17, Material Discrepancies, and DLAI 4140.55/AR 735-1 1-2/SECNAVINST
4355,18A/AFMAN 23-215, Reporting of Item Discrepancies, the SDR is used to report
shipping or packaging discrepancies attributable to the responsibility of the shipper
(including contractors/manufacturers or vendors) and to provide appropriate responses. The
purpose of this exchange is to determine the cause of such discrepancies, effect corrective
action, and prevent recurrence. The SDR guidance is applicable to the Military Services,
Defense Logistics Agency, U.S Coast Guard, and participating civil agencies, hereafter
referred to as Components.

2. The prime goal of the SDR transformation initiative is to move SDRs into an integrated
transactional environment thereby providing an effective means to report and measure
discrepancy related data and pipeline performance. The improved SDR reporting will be
utilized in the development of SDR Service and DLA reports to document repetitive problem
areas and develop procedures and processes to prevent same or similar reoccurrences, The
derivative benefits of the initiative include: near rcal time SDR reporting for immediate
identification and more speedy resolution of reported discrepancics; enabling Perfect Order
Fulfillment computations; facilitating of interoperability internal and external to DoD; and
maximizing the economy, etficiency, effectiveness of the reporting process.

3. This IPT is sponsored by the OSD Installation and Logistics Business Initiatives Council
(BIC).

PURPOSE:

The purpose of this charter is to form a multi-Component governing team, to work in
collaboration, to establish new SDR business process rules, processes, and procedures that
wil) transform and enable DoD to automate, integrate, capture, store, and manage supply
discrepancy reporting on a global enterprise level. This charter provides overarching
guidance, specifies process objectives, delineates IPT member responsibilities, documents
higher level authority to fund and execute the initiative, scts program duration, and serves as
a roadmap towards full implementation.

MEMBERSHIP



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1. The SDR IPT shall be chaired by the DoD SDR System Administrator. The DoD SDR
System Administrator function has been delegated to the Director, DLMSO, by the DUSD
(Logistics).

2. The Components shall provide a representative who has functional expertise with supply
discrepancy report business processing. The designated Componcnt’s representative shall be
the Component's voting member for the SDR IPT. Components may identify supporting
members. Funds for travel and participation in SDR IPT activities will be provided by the
representative’s parent organization,

3. The OSD Installation and Logistics BIC and the Components shall provide other
representatives and advisors, as appropriate. These representatives and advisors shall report
to and coordinate with the Component representative and shall be non-voting members of the
SDR IPT.

RESPONSIBILITIES
J. The Chair of the DOD SDR IPT shall:

a, Set the agenda for each meeting.

b, Determine the minimum standards for SDR data content formats.

c. Convene the SDR IPT when requized.

d. Be responsible to the Installations and Logistics BIC to report progress and activities of
the SDR IPT. Present to the Installations and Logistics BIC for resolution any problems that
arise that prevent the successful accomplishment of SDR IPT objectives and discharge of
SDR IPT responsibilities.

e. Present briefings and documentation as needed to all levels of the BIC.

f. Maintain minutes of cach SDR IPT meeting and actions.

g. Document changes required to DLMS and DLAI 4140.55 et al regulatory guidance
and recommend changes to any other Directive or Instruction as deemed necessary by the
SDR PT.

2, The Members of the DoD SDR IPT shall:

a. Meet at the request of the Chair..



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b. Identify and coordinate information and interoperability requirements to transfer
disctepancy reports and associated follow-on actions across Component lines electronically.
Assist in implementation of approved solutions within their respective organizations.

c. Develop discrepancy reporting metrics for the SDR process that will support the
Components and to OSD in accordance with published guidance and measurement of perfect

order fulfillment. Identify methodology for data capture supporting desired metrics and
assist in implementation of approved solutions within their respective organizations.

d. Ensure compatibility of SDR processing business rules with Component
modernization programs.
AUTHORITY

The DoD SDR IPT derives its authority from the Installations and Logistics BIC.

DURATION

1. The DoD SDR IPT is cffective until the IPT’s objectives are met or for no more that 36
months from the date of this charter.

2. The Charter shall be reviewed annually or as needed for changes resulting from evolving
guidance and the needs of DoD, DLMSO or other interested parties supporting the Future
Logistics Enterprise endeavors.

REVIEW AND APPROVAL

This charter has been reviewed and approved by the DoD Componenv/participating agency

and IPT members.
— DONALD C. PIPP, me

Deputy, Supply Chain Integration
ODUSD(LE&MR)[SCI]