1. IUID in the Supply Chain June 3, 2009

2. 2 Agenda  IUID Workshops  Tracking/Managing Controlled Items by Unique Item Identifier (UII) Requires Additional Business Process Steps  Way Ahead

3. 3 IUID Workshops Way Ahead  Schedule follow-on workshops to discuss levels of intensive management and parking lot issues  Publish proposed policy with transition period direction  Document detailed business rules to enable new processes through iterative, collaborative Process Review Committee/DLMS Change process -Identify champions to document specific requirements to submit as Proposed DLMS Changes (PDC) -Participate actively in the development, coordination and approval process  Develop system requirements Requires coordination to leverage good ideas on systems changes/methodologies Use ERP working groups

4. DoD Requirements for Implementing Item Unique Identification (IUID) The Forward Supply Activity collect the UIIs from the exterior packaging or suspend until items can be validated. The Suppliers are required to have UII(s) available on the exterior of the packaging upon shipment. If the items are owned by more than one owner, the items are stored by owner to facilitate proper inventory and issue. Suppliers are required to assign a UII to the item and mark the item with a 2D symbol to carry the UII. The Distribution Centers collect the UIIs from the exterior packaging or suspend until items can be validated. Items are inventoried by UII and eventually issued by UII to customers. Maintenance activities remove items from the box and scan the 2D symbol to capture identity of the item during repair action. Manufacturers/ Suppliers Distribution Centers Forward Supply Field Maintenance UID Materiel 4

5. 5 Receiving Controlled Items by IUID UII (Distribution Depot and Retail Site) – Additional Business Process Requirements Stow / Inventory ReceivingIssuing * Requires enforcement of MIL-STD 129 marking requirement (add to UID contract clause?) During transition period, if there is a serial numbered item, collect it and associate it w/appropriate UII on receipt ** If the package cannot be opened, see alternate procedures. 1.When prompted, receiver uses AIT to collect UII(s) from outside of unit packaging* via PDF 417: 1.Military Shipping Label 2.Outside packing list (unclassified) 2.If UII prepopulated by ASN, the collected UIIs are systemically compared to the ASN UII 3.If UII(s) are not available on the exterior packaging, the receiver uses the UII in the ASN to place new label w/UII on packaging, 4.System will prompt user to indicate evidence of tampering/damage. If yes, then system will prompt user to open packaging to collect UII(s) from the item(s) and repackage by P&P. 5.If new procurement, there is an extra acceptance step for the receiver (WAWF) 6.If no UII in MSL or ASN and/or user finds UII mismatches, the system will prompt user to execute discrepancy instructions. (See Discrepancy Reporting Slides)

6. 6 Inventorying Controlled Items by IUID UII (Distribution Depot and Retail Site) – Additional Business Process Requirements Stow / Inventory ReceivingIssuing Physical Inventory Requirements:  NWRM (Proposed Policy): -Unit level shall do a 100% monthly physical count by UII. -Installation (post, camp, base, station) level shall do a 100% semiannual physical count by UII. -Depot level shall do a 100% semiannual physical count by UII  Classified, Sensitive and Serially Managed CSI Items (Proposed Policy): -Unit level shall do a 100% monthly physical count by UII. -Installation (post, camp, base, station) level shall do a 100% semiannual physical count by UII. -Depot level shall do a 100% annual physical count by UII.

7. 7 Issuing Controlled Items by IUID UII (Distribution Depot and Retail Site) – Additional Business Process Requirements Stow / Inventory Receiving Issuing 1.Using AIT, collect UII(s) from outside of unit packaging* via PDF 417 2.If UII(s) are not available on the exterior packaging, the system will prompt user whether to open packaging to collect UII(s) from the item(s) and repackage by P&P. 3.System will prompt user to indicate evidence of tampering/damage. If yes, then system will prompt user to open packaging to collect UII(s) from the item(s) and repackage by P&P. 4.Debit inventory by UII issued in warehouse mgt system. 5.Place new label on packaging, if required by system.

8. 8 Way Ahead  Publish proposed policy with transition period direction  Document detailed business rules to enable new processes through iterative, collaborative Process Review Committee/DLMS Change process -Identify champions to document specific requirements to submit as Proposed DLMS Changes (PDC) -Participate actively in the development, coordination and approval process  Develop system requirements Requires coordination to leverage good ideas on systems changes/methodologies Use ERP working groups