How Goods Really Move From Factory to Customer

If you’ve ever watched a relay race and thought, “Cute. Very orderly. Nobody is screaming into a headset,” then congratulations - you have not witnessed goods moving through a modern supply chain.

Because in real life, getting a product from factory to customer is less like a straight line and more like a relay where:

• the baton changes shape mid-air

• half the runners speak different languages (literally and operationally)

• the track keeps moving

• and the crowd (customers) demands live updates

This is what logistics actually is: the messy, magnificent system that turns “we made it” into “it arrived” - at scale, across borders, under deadlines, through weather, labour constraints, port congestion, and the occasional paperwork apocalypse.

And the scale is not small. Global trade in goods and commercial services reached US$32.2 trillion in 2024 (balance of payments basis). UNCTAD’s latest update indicates that global trade in goods and services is expected to exceed about US$35 trillion for 2025.

So when people ask, “How hard can it be to ship a box?” the answer is:

Hard enough that it basically has its own economy.

Let’s walk through how goods really move from factory to customer, end-to-end.

Not the sanitised version. The real one.

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How Goods Really Move From Factory to Customer, End-to-End

When people say “shipping,” they usually mean the visible part: the truck, the tracking link, the delivery photo that looks like evidence in a crime documentary.

But end-to-end logistics includes everything that happens before that photo, and everything that happens after it when the customer says, “That’s not my porch.”

Here’s the actual journey.

Step 1: The plan gets made (and quietly judged by reality)

Before a single carton moves, someone has to decide:

• How much to make, and when

• Where inventory should sit (factory, origin warehouse, destination DC, retail, direct-to-consumer)

• Which transport mode is viable (ocean, air, rail, road)

• What service level you’re promising customers

• What you can afford to promise without lighting margin on fire

This is where logistics stops being “operations” and becomes strategy.

Because every decision here determines your cost-to-serve, delivery speed, risk exposure, and customer experience later.

Step 2: Factory finishes production (and the clock starts ticking)

Once goods roll off the line, they typically move into:

• finished goods storage

• quality checks

• packing and labelling

• palletising or floor-loading prep

• export documentation preparation

This is also where early mistakes breed future chaos:

• wrong labels

• missing carton counts

• incorrect weights and dimensions

• incomplete documentation

Small errors at the factory tend to become expensive errors at the border.

Step 3: Origin pick-up and consolidation

Goods then move from factory to an origin point, often:

• a freight forwarder’s warehouse

• a consolidation hub

• a container freight station (CFS)

• or directly to the port/airport

This stage can include:

• consolidation with other shipments

• cargo screening

• palletisation

• container packing (stuffing)

• export clearance steps

Think of this as the supply chain’s “group project” moment - where everyone’s deadlines collide, and the quiet kid (documentation) turns out to run the whole show.

Step 4: Main transport happens (and most of it is still ocean)

For international freight, the long leg is usually ocean.

UN Trade and Development (UNCTAD) notes that over 80% of world trade volume is carried by sea.

That means most goods travel:

• by container ship through major ports and chokepoints

• on schedules that are vulnerable to congestion, conflict, labour constraints, and weather events

Air freight is faster, but used selectively because it’s more expensive and capacity can be tight. Many businesses only discover this when they “upgrade to air” and the invoice arrives with the emotional tone of a breakup text.

Step 5: Arrival, unloading, and the port handover

When goods arrive at the destination port or airport:

• containers are discharged

• shipments move to bonded areas or terminals

• paperwork and compliance checks begin

• trucking and rail scheduling starts (drayage, intermodal)

• demurrage and detention clocks start whispering threats

This stage is where delays become expensive quickly.

Not always because the product isn’t moving.

Because the fees are.

Step 6: Customs clearance (the gatekeeper moment)

Customs is not a formality. It’s a permission slip.

Depending on the country, product, and shipment, this can involve:

• classification (HS codes)

• valuation and origin

• permits and inspections

• security filings

• duty and tax calculation

• document checks and holds

Clearance is where “we’ve always done it this way” gets tested. Sometimes kindly. Sometimes with penalties.

Step 7: Destination transport to the DC or warehouse

Once cleared, goods move inland to:

• a distribution centre (DC)

• a 3PL warehouse

• retail stores

• cross-dock facilities

• or directly into parcel networks

This includes:

• drayage from port

• linehaul trucking or rail

• appointment scheduling

• unloading and receiving

And yes, this is where “inventory visibility” often becomes a polite fiction.

The goods exist.

Your systems just don’t agree on where.

Step 8: Warehousing and inventory management (where cash wears a barcode)

At the warehouse, logistics covers:

• receiving and put-away

• storage and slotting

• inventory accuracy and cycle counts

• pick-pack processes

• value-added services (kitting, bundling, labelling)

• damage control and shrink management

Inventory isn’t neutral. It ties up capital, takes space, and ages.

Typical inventory carrying costs are often estimated at 20% to 30% of total inventory value, once you account for storage, insurance, depreciation, and cost of capital.

So if your stock strategy is “let’s hold extra, just in case,” you’re also saying, “Let’s pay extra, all the time.”

Step 9: Order fulfilment and parcel handoff

When customers buy, the fulfilment engine kicks in:

• order capture and validation

• picking and packing

• label creation

• carrier injection (handing parcels into carrier networks)

• tracking event generation

• exception handling

This is where logistics becomes customer experience.

Speed is only part of it.

Accuracy, packaging quality, proactive updates, and predictable delivery matter just as much.

Step 10: Last mile delivery (the most expensive 10 metres)

The last mile is where costs spike and expectations peak.

DHL reports the last mile can account for more than 53% of total shipping costs.

Maersk similarly cites the last mile as the most cost-intensive stage, around 53% of total shipping costs in B2C.

This is why brands can nail ocean freight and still lose money at the doorstep.

Because delivering one parcel to one person with one opinion and one “I wasn’t home” note is operationally brutal.

Step 11: Returns and reverse logistics (the boomerang phase)

If the customer returns the product, logistics keeps going:

• reverse shipping label and routing

• inspection and grading

• restock, refurbish, or dispose decisions

• refund timing and customer comms

• compliance and sustainability handling

Reverse logistics is not a side quest anymore.

It is part of the cost-to-serve reality, and it can quietly erase profit if it’s not engineered properly.

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What usually breaks in the factory-to-customer journey

Most breakdowns don’t happen because people are lazy.

They happen because systems are disconnected.

Common failure points:

• incorrect master data (weights, dimensions, product codes)

• poor documentation and compliance discipline

• no single source of truth for milestones

• weak carrier performance governance

• inventory in the wrong place

• last mile exceptions and failed deliveries

• returns processes that are improvised, not designed

In other words: it’s not just “logistics problems.”

It’s coordination problems.

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Where Transport Works fits (as a Logistics Facilitator, not a noise machine)

When goods move end-to-end, the real advantage is not finding “a cheaper carrier.”

It’s building control across the whole journey.

Transport Works operates as a Logistics Facilitator across the factory-to-customer chain by helping businesses:

• design smarter end-to-end logistics flows (not just patch symptoms)

• connect suppliers, carriers, 3PLs, and data into one accountable system

• tighten compliance and documentation so cross-border movement stays clean

• improve supply chain visibility so decisions are made early, not after the damage

• reduce cost-to-serve by fixing where cost actually forms (handoffs, inventory, last mile exceptions)

Less chaos. More control. Better outcomes.

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FAQs: How Goods Really Move From Factory to Customer

How do goods actually move from factory to customer?

Goods move from factory to customer through a coordinated logistics chain that includes production release, origin handling, consolidation, main transport (often ocean or air), customs clearance, inland transport, warehousing, order fulfilment, last-mile delivery, and often returns.

Each stage involves different systems, partners, regulations, and cost structures. The complexity isn’t the distance - it’s the handoffs. Most delays and cost overruns occur where responsibility shifts between parties, not while goods are physically moving.

What is the most critical stage in the factory-to-customer logistics process?

The most critical stage is not transport - it’s coordination.

While ports, carriers, and last-mile delivery get the attention, the biggest risks typically come from poor planning, inaccurate data, weak documentation, and disconnected systems between stages. Small errors at the factory or in documentation often cascade into delays, penalties, inventory misplacement, and customer service failures downstream.

In practice, logistics fails less from movement and more from misalignment.

Why is last mile delivery so expensive in logistics?

Last mile delivery is expensive because it combines low drop density, high labour costs, tight delivery windows, and customer-driven variability.

Industry research shows last mile delivery can account for more than 50% of total shipping costs in B2C logistics. Each parcel requires individual handling, routing, proof of delivery, and exception management. One missed delivery attempt can double handling costs without generating additional revenue.

This is why brands can optimise international freight and still lose margin at the doorstep.

What role does customs clearance play in moving goods internationally?

Customs clearance is the legal gateway that allows goods to move across borders.

It involves correct product classification, valuation, origin declaration, documentation accuracy, and regulatory compliance. Clearance delays are rarely caused by “bad luck” - they usually stem from inconsistent data, misclassification, missing paperwork, or unclear ownership of compliance responsibility.

Customs is not paperwork overhead. It’s a control point that protects or exposes your entire supply chain.

How can businesses reduce risk when moving goods from factory to customer?

Risk is reduced by designing logistics as a connected system rather than a series of isolated transactions.

That means aligning planning, documentation, inventory strategy, carrier management, visibility, and exception handling into one operating model. Businesses that manage logistics end-to-end can identify issues earlier, respond faster to disruption, and prevent small errors from turning into expensive downstream failures.

The goal isn’t zero disruption. It’s faster recovery with less damage.

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The truth, in one line

Goods don’t “ship.”

They get shepherded through a chain of decisions, handoffs, checks, and trade-offs - and every weak link charges you rent.

Transport Works. Because Your Supply Chain Won’t Fix Itself.

Let's Chat

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Insights from Danyul Gleeson, Founder & Logistics Chaos Tamer-in-Chief at Transport Works

Danyul has been in the trenches - warehouses where pick paths were sketched on pizza boxes and boardrooms where the “supply chain strategy” was a shrug. He built Transport Works to flip that script: a 4PL that turns broken systems into competitive advantage. His mission? Always Delivering - without the chaos.

Sources and References

1. World Trade Organization (WTO) World Trade Statistical Review Global trade in goods and commercial services reaching approximately US$32.2 trillion. Source: WTO World Trade Statistical Review

2. UN Trade and Development (UNCTAD) Review of Maritime Transport Estimates that over 80% of world trade by volume is carried by sea, highlighting the central role of ocean freight in global supply chains. Source: UNCTAD Review of Maritime Transport

3. Council of Supply Chain Management Professionals (CSCMP) Supply Chain & Logistics Definitions Industry-standard definitions of logistics, transportation, warehousing, and end-to-end supply chain execution. Source: CSCMP Official Definitions

4. DHL Last-Mile Delivery Reports & Whitepapers Research indicating that last-mile delivery can account for more than 50% of total B2C shipping costs, driven by labour intensity, delivery density, and customer variability.Source: DHL Logistics Trend Radar / Last-Mile Delivery Insights

5. Maersk Ecommerce & Last-Mile Cost Analysis Analysis showing last-mile delivery as the most cost-intensive stage of B2C logistics, often representing around 53% of total shipping costs. Source: Maersk Ecommerce Logistics Insights

6. Investopedia Inventory Carrying Costs Explained Widely cited benchmark that inventory carrying costs typically range between 20%–30% of total inventory value, including capital, storage, insurance, and obsolescence. Source: Investopedia – Inventory Carrying Cost

7. World Bank Logistics Performance Index (LPI) Benchmarks logistics performance across countries, covering customs efficiency, infrastructure quality, tracking and tracing, and shipment reliability. Source: World Bank Logistics Performance Index

8. McKinsey & Company Global Supply Chain Disruption & Resilience Research Analysis of supply chain coordination failures, handoff risk, disruption frequency, and the cost of poor visibility. Source: McKinsey Global Institute – Supply Chain Risk & Resilience

9. OECD Global Trade & Transport Policy Studies Research into cross-border logistics complexity, trade facilitation, and the economic impact of inefficient transport and customs processes.S ource: OECD Trade & Transport Publications