What Are GRN, RDO, and MPS in Logistics

What Are GRN, RDO, and MPS in Logistics?

Learn what GRN, RDO, and MPS mean in logistics, how they work, and why retailers need them for accuracy and efficiency.
4 mins read

…is packed with acronyms that can seem overwhelming. But behind each of these terms lies an important process that directly impacts efficiency, accuracy, and customer satisfaction. Among the most common ones you’ll hear are GRN (Goods Received Note), RDO (Retail Delivery Order), and MPS (Multiparcel Shipment).

If you’re a retailer, distributor, or supply chain manager, understanding these terms isn’t just academic — it’s the key to keeping inventory accurate, reducing errors, and ensuring smooth last-mile delivery.

Let’s break them down one by one and explore why they matter.

🌍 Understanding the Terminology

What is GRN (Goods Received Note)?

A Goods Received Note (GRN) is a document used by retailers and warehouses to confirm the receipt of goods from suppliers. It verifies that the items delivered match the purchase order (PO) in terms of quantity, quality, and specification.

  • Purpose: Ensures accurate inventory updates and serves as proof that the supplier has fulfilled their obligation.
  • Key elements included: Date of receipt, supplier details, product descriptions, quantities received, and any discrepancies.

What is RDO (Retail Delivery Order)?

A Retail Delivery Order (RDO) is a document that authorizes the movement of goods from the warehouse or supplier to retail outlets. It acts as an instruction note, guiding the delivery process.

  • Key elements included: Retail outlet details, product SKUs, quantities ordered, and delivery deadlines.
  • Purpose: Ensures that goods flow correctly through the supply chain and reach retail stores in the right quantity and timing.

What is Multiparcel Shipment (MPS)?

A Multiparcel Shipment (MPS) refers to a delivery that consists of more than one parcel but is tied to a single order, sometimes done via Less-Truck-Load (LTL) shipping. For example, if a retailer orders 50 cartons of frozen food, the order may be split into multiple parcels, but all are tracked under one shipment ID.

  • Purpose: Improves tracking and visibility across multiple parcels within the same order.
  • Key elements included: Master tracking number, individual parcel IDs, and consolidated delivery data.

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⚙️ How GRN, RDO and MPS Work in Practice

GRN WorkflowRDO WorkflowMPS Workflow
Supplier sends goods to the retailer.

Receiving team inspects and counts the goods.

GRN is generated and matched against the purchase order.

Discrepancies are recorded for supplier resolution.
Retailer generates an RDO for specific store replenishment.

Warehouse prepares the goods for delivery.

Transport team delivers goods to the retail outlet.

Outlet acknowledges receipt, ensuring accurate stock alignment.
A single customer order is processed.

Goods are packed into multiple parcels for ease of handling.

All parcels are linked under one master tracking number.

System tracks delivery milestones for each parcel.

🔥 Benefits vs Trade-offs

Benefits

  • Accuracy: GRNs reduce inventory mismatches by providing formal proof of goods received.
  • Efficiency: RDOs streamline store replenishment, ensuring products don’t go out of stock.
  • Visibility: MPS enables full tracking across large multi-parcel orders.
  • Compliance: Standardized documentation improves audit readiness and reduces disputes.
  • Customer satisfaction: Accurate and timely delivery ensures better end-consumer experience.

Trade-offs

  • Complexity: More paperwork and processes can slow down operations if not digitized.
  • Training required: Staff must be trained to handle documentation properly.
  • System dependency: Efficient execution often relies on digital logistics platforms and integration.

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👋 FAQs on GRN, RDO, and MPS

  • A: GRN ensures that what was ordered matches what was received, preventing stock discrepancies.

  • A: A purchase order is raised before goods are shipped, while an RDO instructs the actual delivery to retail stores.

  • A: Discrepancies are reported back to the supplier for resolution, often through a credit note or replacement shipment.

  • A: Yes, especially if they deal with bulk orders that get divided into multiple parcels during transit.

📞 Got more questions? Submit your questions to Ninja Van’s logistics experts for tailored answers.

👥 Use Cases: Where These Processes Shine

Inventory Flow & Supply Chain Visibility
  • Large Retail Chains: Synchronizing stock across hundreds of outlets with RDO ensures no store is understocked.
  • B2B Wholesale: MPS provides visibility when delivering bulk shipments across multiple retail clients.
  • Frozen Food & Perishables: GRN and RDO accuracy is critical to ensure time-sensitive goods are received correctly.
  • Fashion Retailers: Multiparcel shipments allow large seasonal restocks to be tracked parcel by parcel.

These processes are not just paperwork — they are the backbone of efficient store replenishment.

🎯 Key Takeaways

  • GRN (Goods Received Note) confirms receipt of goods and updates inventory accurately.
  • RDO (Retail Delivery Order) directs goods to the right retail store at the right time.
  • MPS (Multiparcel Shipment) enables visibility across multiple parcels in one order.
  • Together, these processes reduce errors, streamline replenishment, and improve delivery visibility.

🤝 Ready to Make Replenishment Smoother and More Accurate?

Ninja Restock gives your business the edge with digitalized GRN, RDO, and MPS processes, making store replenishment faster, error-free, and fully trackable.

Whether you manage a single store or hundreds of outlets, these solutions keep your inventory flowing smoothly, reduce operational headaches, and improve your customer experience.

We have also explored Ninja Restock as a leading digitised B2B Restock and Retail Inventory Replenishment solution, complete with transparent tracking at every step in a previous post:

🔥 Read more: What Is Ninja Restock? Retail Inventory Replenishment with Ninja Van

👉 Efficient, accurate, and controlled — all in one! Request a quote now!

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