1. 1 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY DEFENSE LOGISTICS AGENCY AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT Prepositioned Materiel Receipt (PMR) Issue and Requirements Defense Logistics Management Standards Office Mary Jane Johnson Supply PRC Meeting 15-1 April 29, 2015

2. 2 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 2 SPRC 15-1: Three PMR Agenda Topics DLMSO Brief – PMR Issue and Requirements Components Briefings on Findings from Supply PRC 14-01, Action Item #25 PMR Review DLA J3 PMR Brief on Missing PMR transactions - Operational Impact at DLA Distribution and DLA Supply Centers

3. 3 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 3 PMR Issue and Requirements PMR Issue PMR Requirements/Scenarios (Typical) PMR Policy Component PMR tasking

4. 4 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 4 PMR Issue PMR Purpose: Provide storage activities with advance information on materiel due-in; Storage Activities use PMRs to properly record receipt of materiel to the correct owner PMR Issue: No PMR! Components are not consistently providing PMR transactions to storage activities as required by DOD policy and DLMS procedures Impact of No PMR:  Can result in materiel being reported to the wrong owner, high volume of Supply Discrepancy Reports, time lost time on manual research  Failure to generate PMRs is an Audit Readiness issue which results in degradation of the receipt process and inaccurate DOD accountability FIX: DOD Components ensure their supply systems generate PMRs, and PMR updates, as required by DoD policy and procedures

5. 5 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 5 PMR Scenarios (Typical) Pre-Positioning data for receipts Receipts from New Procurement Base Realignment and Closure (BRAC) Supply Storage and Distribution (SS&D) Inventory Management and Stock Positioning (IMSP) Returns to DLA From Industrial Sites under BRAC and NIMS Sites Materiel Returns, Redistribution of Assets, Directed Discrepant/Deficient Materiel Returns (Customer Asset Report), Automatic Returns and Retrograde Returns Retrograde Returns Directed Discrepant/ Deficient Materiel Returns –Supply Discrepancy Report –Product Quality Deficiency Report –Transportation Discrepancy Report –Retrograde Returns Maintaining Accountability During Maintenance (Organic and Commercial) Logistics Reassignment

6. 6 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 6 PMR Policy Excerpts – DoD PMR is required by DoD Policy DoDM 4140.01, Vol 5 (DoD Supply Chain Materiel Management Procedures: Delivery of Materiel), Enclosure 3, page 29 8.c. For due-in records, receiving activities will: (1) Record all anticipated receipts of materiel from any source (i.e., procurement, redistribution, requisitioning, and returns to include excess, retrograde, and directed return of discrepant or deficient materiel) as materiel due-in. (a) If the source of the materiel due-in is a contractor, the materiel due-in should identify if destination acceptance is required. (b) Classify accounting for progress payments made to contractors as prepaid assets, rather than as inventory consistent with DoD inventory valuation policy. (2) Provide a current record of all anticipated materiel receipts to receiving storage activities through the use of the appropriate prepositioned materiel receipt transactions as defined by Reference (q) (DLMS Manual Volume 2). DLMSO Comment: Receiving activity in paragraph c, denotes the activity to which the Receipt is being reported (owner)

7. 7 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 7 PMR Policy Excerpts – DoD DoDM 4140.01, Vol 6 (Materiel Returns, Retention and Disposition), Enclosure 3, page 10 1.d. The materiel manager will: (1) Establish an asset due-in quantity upon directing materiel to be returned to a wholesale stockage or repair location. (2) Establish an asset due-in quantity when confirmation has been received that such materiel has been shipped to a wholesale distribution or maintenance depot, whether organic or commercial. DoDM 4140.01, Vol 6, Enclosure 3, page 13 3.h. The responsible organization may direct return of discrepant materiel to a specified location, authorize the receiving activity to retain the discrepant materiel at no cost, or dispose locally or through the DLA Disposition Services. Upon directing a return to a DLA Distribution Depot, the responsible organization must establish a due-in and provide a prepositioned materiel receipt to the receiving activity under chapter 12 of Reference (m) (DLMS Manual, Volume 2).

8. 8 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 8 Status of PMR Issues In light of known problems with the absence of required PMRs, Supply PRC Meeting 14-1 tasked the Services and DLA to review their systemic generation of PMR transactions, as well as timely updates thereto as information changes (e.g., revised delivery dates, etc.), identify PMR gaps and provide DLMSO with their proposed corrective action and time line, for each of the categories where there are gaps. (Supply PRC 14-1 Action Item #25) Component review must include all categories requiring PMR. On March 12, 2015, DLMSO provided the Components a synopsis of DLMS/MILSTRAP/MILSTRIP PMR procedures, and guidance on where detailed procedures could be found in the Defense Logistics Manuals, to assist with review of areas requiring PMR. Components to present the findings from the Supply PRC 14-1 (October 22-23, 2014) tasking, at Supply PRC Meeting 15-1, April 29, 2015.

9. 9 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 9 PMR Issues and Requirements QUESTIONS?

10. 10 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 10 PMR Issues and Requirements BACKUP

11. 11 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 11 PMR Issues and Requirements Policy: DODM 4140.01, Volume 5 ht ttp://www.dtic.mil/whs/directives/corres/pdf/414001m/414001m_vol05.pdf ht ttp://www.dtic.mil/whs/directives/corres/pdf/414001m/414001m_vol05.pdf Procedures: DLM 4000.25, DLMS, Volume 2 (Supply Standards and Procedures) DLM 4000.25-1, MILSTRIP DLM 4000.25-2, MILSTRAP Link for DLM files www.dla.mil/j-6/dlmso/elibrary/manuals/dlm/dlm_pubs.aspwww.dla.mil/j-6/dlmso/elibrary/manuals/dlm/dlm_pubs.asp PMR Scenario Summary document www.dla.mil/j-6/dlmso/Archives/Supply/meetings/29Apr15/PMR_Scenarios_031215.docx www.dla.mil/j-6/dlmso/Archives/Supply/meetings/29Apr15/PMR_Scenarios_031215.docx

12. 12 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 12 Select Procedures References Note: In the DLMS Manual, PMR is discussed as Advance Receipt Information (ARI). The terms PMR and ARI are one in the same with regards to procedures; a future PDC will harmonize the language to change the DLMS term ARI to PMR. References in the following slides are for the DLMS Manual Volume 2 unless otherwise noted. DLMS Vol 2, CHAPTER 12, RECEIPT AND DUE-IN  C12.1.1. Standard Procedures.  C12.2. Control of Materiel Due-In (Basic Procedures that apply to all noted scenarios  C12.3. Providing the Storage Activity with Advance Receipt Information (PMR) MILSTRAP C4.9 Processing Discrepant/Deficient Receipts Alternate Reference: DLMS: C13.2.8.2.8  C4.9.1 General  C4.9.2. Receipt Reporting for Discrepant Shipments from Procurement Instrument sources.  C4.9.3 Receipt Reporting for Discrepant Shipments from Non-Procurement Instrument sources. C4.9.3.4. Resolution of Reported Receipt Discrepancies

13. 13 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 13 Select Procedures References DLM 4000.25, Vol 2, Chapter 11, Materiel Returns, Redistribution of Assets, Directed Discrepant/Deficient Materiel Returns and Retrograde Returns Materiel Returns – Customer Asset Report  DLMS Vol 2, C11.11 / C11.11.2. Automatic Returns, C11.9. Retrograde Returns Directed Discrepant/ Deficient Materiel Returns  C11.20. DIRECTED DISCREPANT/DEFICIENT MATERIEL RETURNS AND RETROGRADE RETURNS  C11.20.3.1. Supply Discrepancy Report (SDR) C12.3.2.2. Item Unique Identification C17.2.7.1. IMMs will use the SDR response to establish a due-in record C17.3.10.3. Materiel Returns  C11.20.3.2. Product Quality Deficiency Report C12.2.7. Product Quality Deficiency Report (PQDR) Exhibit Tracking  Transportation Discrepancy Report (TDR) C11.20.3.3. Transportation Discrepancy Report  Retrograde Returns C11.20.3.4. Retrograde Returns

14. 14 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 14 Select Procedures References Maintaining Accountability During Maintenance  C13.2.9.5. Requirements (PMR for Maintenance)  C13.2.9.5.1. Dues-In and ARI  C13.2.9.5.2. Materiel Relocation C12.4. Loan Materiel  C12.4.2 PMR C12.5. Logistics Reassignment Memorandum Due-In and Advance Receipt Information  C12.5.1 Memorandum Due-In

15. 15 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 15 Select Procedures References DLM 4000.25-2, MILSTRAP, Chapter 4, Due-In and Advance Receipt Information  C4.3. PRE-POSITIONING DOCUMENTS FOR RECEIPTS DLM 4000.25, Vol 2, Chapter 11, Materiel Returns  C11.19. Returns to DLA from Industrial Sites Under BRAC Supply, Storage and Distribution and National Inventory Management Strategy Site Customers  C11.19.1. Industrial Sites Procedures  C11.20. Directed Discrepant/Deficient Materiel Returns And Retrograde Returns DLM 4000.25, Vol 2, Chapter 12, Due-In and Advance Receipt Information  C12.1.1. Standard Procedures. This chapter prescribes standard procedures for sending information about incoming materiel between wholesale managers and storage activities and between owner/managers and maintenance activities, and between losing inventory manages (LIM) and gaining inventory managers (GIM). The procedures require timely establishment of due-in information for all anticipated receipts of materiel, and requires that managers provide receiving storage activities with information for anticipated receipts.”  C12.3. “Providing The Storage Activity With Advance Receipt Information [PMR]”

16. 16 WARFIGHTER SUPPORT ENHANCEMENT STEWARDSHIP EXCELLENCE WORKFORCE DEVELOPMENT WARFIGHTER-FOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP 16 Select Procedures references PRE-POSITIONING DOCUMENTS FOR RECEIPTS  C4.3. (MILSTRAP) Base Realignment and Closure (BRAC) Supply Storage and Distribution (SS&D) Inventory Management and Stock Positioning (IMSP) (BRAC SS&D IMSP)  DLMS Vol 2, C11.2.5.3. Returning DoD Component’s responsibility to provide a PMR to the applicable storage activity if that activity is a collocated DLA storage activity using the (DSS)  DLMS Vol 2, C12.3.4. Optional National Inventory Management Strategy (NIMS) Advanced Receipt Notification Returns to DLA From Industrial Sites under BRAC and NIMS Sites  C12.3.5. ARI for Materiel Returns under NIMS and Base Realignment and Closure (BRAC) Retail Supply, Storage and Distribution (SS&D)/Inventory Management and Stock Positioning (IMSP).  C11.19. Returns to DLA from Industrial Sites under BRAC SS&D and National Inventory Management Strategy Site (NIMS) Site Customers  National Inventory Management Strategy (NIMS)  DLMS Vol 2, C11.19.2. National Inventory Management Strategy (NIMS) Procedures