DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

December 07, 2017

MEMORANDUM FOR SUPPLY DISCREPANCY REPORT (SDR) PROCESS REVIEW 

COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 

1241, Procedures for Processing Supply Discrepancy Reports (SDRs) for Total 

Nonreceipt of Defense Logistics Agency (DLA) Consolidation and 

Containerization Point (CCP) Shipments (Supply/SDR) 

We are forwarding the attached change to DLM 4000.25, Defense Logistics Management 

Standards, for phased implementation beginning March 2018.

Addressees may direct questions to Mr. Ben Breen, or Ms. Ellen Hilert at email: 

DLMSSDR@dla.mil. All others must contact their Component designated SDR PRC 

representative available at www.dla.mil/HQ/InformationOperations/DLMS/DLMSPrograms/sdr. 

HEIDI M. DAVEREDE

Program Manager 

Enterprise Business Standards Office

Attachment

As stated

cc: 

ODASD (SCI)
Attachment, ADC 1241

Page 1

Attachment to ADC 1241 

Procedures for Processing Supply Discrepancy Reports (SDRs) for Total 

Nonreceipt of Defense Logistics Agency (DLA) Consolidation and 

Containerization Point (CCP) Shipments 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Ray Bowen, General Services Administration, National Customer Service Center, 

816-548-3007, ray.bowen@gsa.gov

b. Ellen Hilert, DOD SDR System Administrator, DLMS Program Office, 

DLMSSDR@dla.mil

2. FUNCTIONAL AREA: 

a. Primary/Secondary Functional Area: Supply Discrepancy Reporting

b. Primary/Secondary Functional Process: Supply

3. REFERENCES:

a. DLM 4000.25, DLMS, Volume 2, Supply, Chapter 17, Supply Discrepancy Reporting

b. Code of Federal Regulations (CFR) §101-26.803-1, Discrepancies or Deficiencies in 

GSA or DOD Shipments, Material, or Billings.

c. ADC 1217, WebSDR Process Enhancement for Source of Supply Disposition 

Response to Storage Activity on Customer-Initiated SDRs, September 27, 2017

d. ADC 452, Implementation of DOD WebSDR Automated SDR Rejection Capability, 

December 19, 2011

4. APPROVED CHANGE(S): Green highlighting identifies substantive revisions subsequent 

to staffing.

a. Brief Overview of Change: This change clarifies the procedures and responsibilities 

of all parties in the resolution of nonreceipt SDRs for shipments through DLA CCPs. 

Overarching procedures are applicable to all Components; however, unique business rules

applicable to General Services Administration (GSA)-directed shipments are included. 

b. Background: 

1. Presently, there is some confusion concerning the responsibilities of the action 

Agency when resolving shipping discrepancies or customer inquiries relating to GSA-directed 

shipment after arrival at a CCP. Customers sometimes have to contact both GSA and the CCP

while trying to resolve the issue. Working with a Continuous Process Improvement (CPI)

facilitator, DLA and GSA documented the current state of information flow in order to identify 

improvements to procedures. The work was predicated on the fact that a better understanding of 

which Agency is responsible for what information and improvements in the information flow 

will help the customer service teams of both organizations; therefore, reducing customer effort 
Attachment, ADC 1241

Page 2

when an inquiry is made. In addition, system enhancements in both DLA and GSA interfaces 

will improve information exchange between the action activities and the customer.

2. Unlike DOD sources of supply, GSA policy does not authorize credit to 

customers when proof of delivery (POD) is available for a vendor delivery to the CCP. At this 

time, DLA does not assume financial responsibility for GSA transshipments via CCPs. The 

customer reporting total nonreceipt of a GSA-directed vendor shipment has no avenue to seek 

reimbursement if the CCP cannot locate the shipment. 

Staffing Note: The outcome of a current initiative undertaken by the Office of the Deputy 

Assistant Secretary of Defense, Supply Chain Integration (ODASD SCI) may influence GSA 

policy for customer reimbursement. Gaps in overarching policy and DOD Component 

procedures for maintaining accountability of materiel while in-transit and associated financial 

reporting on the buyer and seller side are under review so policy and procedures can be better 

aligned for audit readiness.

3. Customer SDRs are required to record total nonreceipt of shipments 

transshipped via a CCP. Customers should direct these SDRs to the CCP for initial research. If 

sent initially to the source of supply, the source of supply should forward to the CCP. The SDR 

will provide visibility of discrepancies, establish a workflow for research and resolution, and, 

potentially, help identify problem vendors and root causes, such as noncompliant shipping labels.

4. ADC 1217 (Reference 3.c.) provides a mechanism to return SDRs to the 

original action activity after the original activity has reviewed, responded, and closed the SDR in 

their Component SDR system. The source of supply will leverage this process for returning 

SDRs to the CCP after the CCP initially forwarded the SDR to the source of supply. The 

concept is that the “returned” SDR will include additional information, such as proof of delivery 

(POD), needed for further research by the CCP. 

c. Approved Change in Detail: Update DLMS SDR procedures to clarify appropriate 

SDR distribution and processing for total nonreceipt of materiel shipped to the customer via DLA 

CCP as follows: 

1. Customers should direct SDRs to the CCP for research, including proof of delivery 

(POD) to the CCP when available. WebSDR will provide an information copy to the source of 

supply based upon customer input to the source of supply field. If the customer bypasses the CCP, 

the source of supply will forward to the CCP for research using Reply Code 504 (SDR forwarded to 

new action activity as shown). 

2. If the CCP confirmed incoming delivery, but neither outgoing nor current status of 

the shipment can be determined, the CCP will annotate their findings on the SDR reply to the 

submitter and forward to the source of supply for resolution using the applicable 300-series 

forwarding reply code.

3. Upon receipt of the CCP response, the DOD Component source of supply will 

conduct research as needed (e.g., using Integrated Development Environment/Global Transportation 

Network Convergence (IGC) or contacting the vendor, if applicable). As a result, the source of 

supply may provide credit based upon customer-reported nonreceipt and other findings. If the source 

of supply is able to obtain previously unavailable POD to the CCP, the source of supply will attach 

the POD to their SDR reply and request additional research at the CCP using this new information. 

This will be accomplished using Reply Code 527 (SDR returned to storage activity/initial storage 

activity for action; see remarks) (Reference 3.c.).
Attachment, ADC 1241

Page 3

4. When the source of supply reply (using Reply Code 527) returns an SDR to the 

CCP, the CCP will use POD information to research further and provide an updated SDR reply. In 

addition to Reply Code 527, the source of supply will cite Reply Code 135 (Documentation/technical 

data is being forwarded) when forwarding POD attachments.

5. If the CCP is able to locate the frustrated shipment within the CCP, the CCP will 

respond to the customer that the materiel will be shipped using Reply Code 123. If the CCP 

continues to be unable to provide status for the shipment, the CCP will again forward the SDR to the 

source of supply for final disposition. 

6. The source of supply must provide a reply to the customer to close out the action 

on this SDR. The SDR reply will indicate when reimbursement is applicable.

7. GSA will advise their customers that GSA policy does not authorize credit when 

POD to the CCP is available. GSA customers will need to re-requisition if the materiel is still 

required.

8. WebSDR will modify the edit authorized under ADC 452 (Reference 3.d.) 

designed to block transmission of SDRs for direct vendor delivery (DVD) shipments (identified by 

Document Type 6) addressed to DLA Distribution activities. The modified edit will allow DVDrelated SDRs addressed to CCPs to continue processing while rejecting DVD-related SDRs address 

to DLA Distribution Depots. (See paragraph 9, Impact, for a list of CCP Routing Identifier Codes

(RICs)/DOD Activity Address Codes (DoDAACs).)

9. SDR systems supporting item managers must be able to forward DVD-related 

SDRs (Document Type 6) to CCPs. 

10. The DLA Distribution Standard System (DSS) must be able to accept incoming 

DVD-related SDRs (Document Type 6) addressed to CCPs. 

d. Revisions to DLM 4000.25 Manuals: 

1. Revise DLM 4000.25, Volume 2, Chapter 17, Supply Discrepancy Reporting, 

as shown in Enclosure 2.

2. Revise DLM 4000.25, Volume 2, Appendix 7.28, Supply Discrepancy Report 

Relevant Data Elements, for existing Reply Code 123 as shown below.

“123 Materiel will be shipped/reshipped (estimated date of replacement shipment provided, 

when known).”

e. Transaction Flow:

1. The diagram shown at Enclosure 1 addresses responsibilities between 

organizations when GSA-directed shipments are lost at CCP and the customer sends an SDR to 

the CCP. The diagram employs GSA as an example to illustrate the flow and retain visibility of 

the GSA unique requirements. However, comparable transaction flow and procedures apply to 

other sources of supply.

2. If the customer sends the SDR to the source of supply (rather than the CCP), 

the source of supply will forward the SDR to the CCP using Reply Code 504 procedures. After 

forwarding to the CCP, the illustrated flow applies.
Attachment, ADC 1241

Page 4

f. Alternatives: None identified for forwarding functionality. 

Staffing Note: Prior to development of this change, DLA and GSA explored various approaches 

that would enable DLA to reimburse GSA for astray shipments when proof of delivery to the 

CCP is available. Based on reimbursement from DLA, GSA agreed to offer credit to the 

customer under MILSBILLS procedures. After further consideration, DLA withdrew support for 

reimbursing GSA for “lost” CCP shipments. The DLMS Program Office was unable to identify 

an overarching policy requirement for GSA reimbursement in this scenario. 

5. REASON FOR CHANGE: Procedures for reporting and resolving customers’ inquiries/

discrepancies for total nonreceipt of shipments after reaching a DLA CCP are not well 

documented and are not consistently applied. Customers are not aware that GSA will not grant 

credit for total nonreceipt if POD to the CCP is available.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Clarifies information flow between customer and action activities when 

resolving SDRs. Use of SDRs will heighten awareness and provide enterprise visibility of the 

high volume loss of materiel after delivery to the CCP and, potentially, prompt improved 

handling and tracking procedures for this materiel. Customer submission of SDRs to the CCP 

should help isolate the causes for lost materiel.

b. Disadvantages: None identified.

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Phased implementation of 

this change coincides with implementation of ADC 1217. ADC 1217 target implementation is 

March 2018. (If ADC 1217 implementation slips, DAAS and Components will delay 

implementation of this change accrodingly.) Email routing (as described in paragraph 9) for 

Document Type 6 SDRs addressed to CCPs is required pending DSS upgrade targeted in 

December 2018.

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: For Fiscal Year 2017, GSA processed 2,171 

reports of non-receipt for export shipments and provided proof of delivery. The total value of 

these orders was $3,456,954.20.

9. IMPACT: 

a. New DLMS Data Elements: None.

b. Changes to DLMS Data Elements: This change includes minor revision to SDR 

Reply Code 123 explanation text as shown above.

c. Automated Information Systems (AIS): 

1. Component SDR systems must be capable of forwarding SDRs to the CCP for 

review and accepting forwarded SDRs from the CCP. Source of supply functionality to return an 

SDR to the initial action activity using Reply Code 127 is necessary for full implementation of 

this change.
Attachment, ADC 1241

Page 5

2. DLA Distribution Standard System (DSS):

(a) DSS will need upgrades to facilitate processing of incoming SDRs 

addressed to CCPs and forwarding SDRs to the source of supply after CCP review. Currently, 

DSS does not accept SDRs identified as DVD shipments (Document Type 6). To implement this 

change, DSS will need to accept DVD-related SDRs at CCP locations when submitted directly 

by the customer or when forwarded for research by the item manager.

(b) DLA Distribution must provide any changes to CCP RIC/DoDAAC 

values and email addresses (identified below) to support interim routing via email pending 

system upgrade.

3. DLA Enterprise Business System (EBS) will need a system upgrade to permit 

forwarding of DVD (Type 6) SDRs to CCPs for research.

4. Attachment functionality is highly desirable for implementation of this change. 

Pending programming support for this functionality, the CCP and source of supply will need to 

use DOD WebSDR to view or provide attachments.

d. DAAS: 

1. Reply code table update as above.

2. Pending DSS upgrade to accept DVD-related SDRs at CCPs, WebSDR must 

distribute Document Type 6 SDRs addressed to the following locations via email.

• New Cumberland CCP = SW3123 – SAW and New Cumberland -

Transshipment Default J8 - SC3104 – SDJ and SCP, Email to: sdr@dla.mil

• San Joaquin CCP = SW3225 – SBV, San Joaquin CCP = SW3224 – SBX,

San Joaquin CCP = SW3200 – SBC, SB2, SB3, SB4, SB5, SB6, SBE, SBG, 

SBI, SBM, SBP, SBS, Email to: DDJC.ISDR@dla.mil 

• Norfolk Hub = SW3185 – SNR, Email to: DDNV.ISDR@dla.mil

• Warner Robbins CCP = SW310Q – SLF, Email to: 

DDWGCustomerservice@dla.mil

e. Non-DLM 4000.25 Series Publications: Update internal operating guides as needed.

10. PROPOSED DLMS CHANGE (PDC) 1241 STAFFING RESPONSE/COMMENT 

RESOLUTION:

Originator Response/Comment Disposition

1. Army Concur Noted.

2. Navy Concur

Concerns during PDC staffing:

1. PDREP does not have CCP POCs (Action Points) in 

which to forward these SDRs. In addition, the source of 

supply (SoS) and customer is not aware whether or not a 

CCP was involved; it appears material is being shipped 

Noted.

EBSO Response: 

1. There is absolutely no 

requirement for the Navy to know 

specific POCs at the CCP. 
Attachment, ADC 1241

Page 6

Originator Response/Comment Disposition

from DLA. How will the customer determine whether or 

not a CCP is involved and who will provide a list of all 

CCP POCs to PDREP to be loaded?

2. What mechanism will be in place to ensure additional 

information is provided and prevent an SDR from being 

bounced back and forth between shipper, SoS, and CCP 

(therefore preventing timely resolution and 

accountability)? In addition, the systemic requirements 

to implement PDC 1217 have not been completed/fully 

approved for implementation. What is the workaround if 

the programming to support PDC 1217 doesn’t happen?

3. Is posting a loss for total non-receipt under this 

process a FIAR compliant method of resolution? Is 

providing POD to the CCP the responsibility of the SoS 

or DLA since the mvt 601 is coming from DLA?

4. What encourages the CCP to perform research if they 

can fail to provide shipment status? What is the expected 

disposition for the SoS if there is no information 

provided to them by the CCP? The SoS cannot provide 

reimbursement without any supporting documentation. 

a. If the Navy receives a 

customer SDR for nonreceipt and is 

aware that materiel was shipped via 

a CCP you can use the Reply Code 

504 process to direct the SDR to the 

CCP. 

b. If customer directs their 

SDR to the CCP and the CCP 

cannot locate and has no proof of 

delivery, they will forward the SDR 

to the Navy for response using 

Reply Code 305. If you contact 

your vendor and find that there is 

proof of delivery to the CCP, you 

can return the SDR to the CCP with 

the proof of delivery (POD) using 

the new “backward flow” under 

ADC 1217 (a simple Reply Code 

527 and the Transfer-To RIC of the 

CCP (similar to the 504 process)).

 The Navy may not require use of

these procedures; this change 

provides procedures as guidance for 

a scenario that may occur. GSA 

commonly uses vendor shipments 

consolidated by the CCP and 

needed a way to forward SDRs to 

the CCP to search for astray freight. 

Customers needed additional

guidance to recognize that 

WebSDR does support direct 

routing to the CCP.

 Customers and GTN-IGC 

receives status for shipment 

consolidation. Customers reporting 

total nonreceipt of traceable 

shipments are required to research 

prior to submission of an SDR.

 Once the Navy programs for 

ADC 1217, there is no additional 

Navy programming impact for this 

change since it uses the same 

“backward flow” (directed to the 

CCP rather than the distribution 

center).

2. The procedures described do 

allow the SDR to be passed backand-forth in the scenario where the 

customer does not obtain proof of 

delivery prior to submitting an SDR 

to the CCP. The backward flow is 

necessary to support 

communication, providing the 
Attachment, ADC 1241

Page 7

Originator Response/Comment Disposition

POD, transactional audit trail, and 

systemic recognition of which 

office has current action 

responsibility for the SDR. The 

alternative is off-line 

communication.

3. Obtaining POD from the vendor 

is the responsibility of the source of 

supply. DoD sources of supply are 

expected to reimburse the customer 

for materiel that cannot be 

located/tracked after POD to the 

CCP is provided. DLA has no 

further responsibility. The situation 

described is not high volume, but 

does require identified procedures. 

This is particularly true for GSA, 

which frequently uses the CCP for 

vendor shipments and does not 

reimburse customers after POD.

4. The CCP does attempt to locate 

astray freight. However, if POD to 

the CCP is available, but there is no

outbound shipment supported by 

DLMS supply or transportation 

transactions indicating that the 

materiel ever left the CCP, the SDR 

will confirm this situation. The 

SDR is the supporting evidence for 

customer reimbursement. 

3. Air Force Concur Noted.

4. Marine Corps Concur Noted.

5. DLA Concur

This change will require programing changes to both 

DSS and EBS, system implementation will be dependent 

on programing priorities/schedules. 

• Pending system changes, WebSDR will distribute Type 

6 SDRs addressed to the following location via e-mail: o 

New Cumberland CCP = SW3123 - SAW and New 

Cumberland - Transshipment Default J8- SC3104- SDJ 

and SCP, Email to: sdr@dla.mil 

o San Joaquin CCP = SW3225 – SBV, San Joaquin CCP 

= SW3224 - SBX, San Joaquin CCP = SW3200 – SBC, 

SB2, SB3, SB4, SB5, SB6, SBE, SBG, SBI, SBM, SBP, 

SBS, Email to: DDJC.ISDR@dla.mil 

o Norfolk Hub = SW3185 – SNR, Email to: 

DDNV.ISDR@dla.mil 

o Warner Robbins CCP = SW310Q – SLF, Email to: 

DDWGCustomerservice@dla.mil 

Noted.

Implementation will be dependent 

upon WebSDR forwarding Type 6 

SDRs via email to CCP RICs/

DoDAACs pending a DSS change 

for limited functionality supporting

Type 6 SDRs for nonreceipt and an 

EBS change to allow forwarding 

Type 6 SDRs to the CCP. The CCP 

will need to use WebSDR for the 

reply. This work-around will allow 

the approved procedures/process 

flow to move forward. We will use 

December 2018 as target for the 

DSS/EBS transactional support for

Type 6 SDRs sent to the CCP

pending further update.
Attachment, ADC 1241

Page 8

Originator Response/Comment Disposition

[DSS is programmed to keep incoming Type 6 SDRs out 

of the iSDR program. EBS cannot forward Type 6 SDRs 

to DLA Distribution.]

6. GSA Concur

GSA provides the following metrics for use in the ADC: 

For Fiscal Year 2017, GSA processed 2,171 reports of 

non-receipt for export shipments and provided proof of 

delivery. The total value of these orders was 

$3,456,954.20.

Noted.
Enclosure 1, ADC 1241 

Page 1

Enclosure 1, Flow Diagram
Enclosure 2, ADC 1241 

Page 1

Enclosure 2, Defense Logistics Manual (DLM) Chapter Revisions

Revise DLM 4000.25, Defense Logistics Management Standards, Volume 2, Chapter 17, Supply 

Discrepancy Reporting, as shown. 

Changes are identified by bold red italics and strike-though text. Intervening text between updated 

paragraphs is not shown. Paragraphs will be renumbered as appropriate due to identified revisions. 

C17.3.10. SDR Distribution. This section addresses those organizations that must be identified 

on the SDR as initial action recipient or as receiver of information copies. Such determination is based 

upon the type or origin of the shipment involved, the DoD Component that directed shipment, and the 

type of discrepancy. Applicable action activities include ICP, ILCOs, DLA CCPs, and DLA 

Distribution Centers. For items requiring special handling and/or reporting, such as controlled 

inventory items, the responsible action activity must ensure additional distribution of the report as 

required. The submitter will provide a copy of the Serious Incident Report, or other Componentrequired report, regarding controlled inventory items believed to be stolen, lost, or unaccounted for. 

Do not mail hard copy documents when Where access to an electronic SDR application and 

associated supply information is available, hard-copy documents will not be mailed. Where electronic 

attachment capability is not available, users should supplement their original SDR submission via 

WebSDR correction process attachment functionality to upload exception is provided for e-mailing 

of information not readily available to the responsible/action activity and photographic/pictorial 

evidence of the discrepancy. 

(Intervening text not shown)

C17.3.10.2. SDR Distribution for Shipment (Item) Discrepancies

C17.3.10.2.1. DoD Originated Shipments. Customers will normally direct SDRs 

will normally be directed to the DoD shipping activity with exceptions and specific business rules as 

follows

(Intervening text not shown)

C17.3.10.2.1.2. Total Nonreceipt SDRs

C17.3.10.2.1.2.1. Total Nonreceipt of Security Assistance Shipments 

from DLA Distribution Centers. ILCOs will forward SDRs will be forwarded by the ILCO directly to 

the DoD shipping depot regardless of implementing Component. Where the shipping depot is 

unknown, forward to the ICP/IMM.

C17.3.10.2.1.2.2. Total Nonreceipt of Materiel Shipped via DLA CCP 

C17.3.10.2.1.2.2.1. Customers should direct SDRs to the CCP 

for research. Include proof of delivery (POD) to the CCP when available. If the SDR bypasses the 

CCP, the source of supply will forward the SDR to the CCP for research using Reply Code 504

including POD if not provided on the initial submission.

C17.3.10.2.1.2.2.2. The CCP will reply to the customer with 

status of the shipment if no further action is needed. WebSDR will provide a copy of the SDR to the 

source of supply. If the CCP cannot provide status or if POD is not available, the CCP will annotate 
Enclosure 2, ADC 1241 

Page 2

the SDR reply to the submitter with this information and forward to the source of supply for further 

research using the appropriate 300-series forwarding reply code. 

C17.3.10.2.1.2.2.3. After CCP response, the source of supply 

will review CCP findings and conduct additional research as needed (e.g. using Integrated 

Development Environment/Global Transportation Network Convergence (IGC) or contacting the 

vendor, if necessary). As a result, the source of supply may return the SDR to the CCP for further 

research including the POD (if not previously attached). Alternatively, the source of supply may 

provide credit based upon customer-reported nonreceipt and other findings. By exception to 

standard procedures, GSA policy does not authorize credit when proof of delivery to the CCP is 

available.