---
title: "Factory delivery"
description: "The delivery of goods by a factory whereby the goods are put at the disposal of another (internal) party such as a commercial department."
url: "https://oceancargo.co.uk/shipping-terms/factory-delivery"
date: "2026-05-25T14:11:22+00:00"
language: "en-GB"
---

![Ocean Cargo](https://oceancargo.co.uk/images/GenPics/OCs-Customs-Brokerage.webp)

 # Understanding Factory Delivery (FCD): A Comprehensive Freight Guide

## What is Factory Delivery (FCD)?

In the intricate world of global logistics, precise terminology is paramount. One such term, often encountered in internal supply chain discussions, is **Factory Delivery (FCD)**. At its core, Factory Delivery refers to the point at which goods, having completed their manufacturing process, are made available by the production facility to another internal department within the same organisation, such as a commercial, sales, or distribution department. It signifies the transition of responsibility from manufacturing to the next stage of the internal supply chain, prior to external shipment.

While FCD is primarily an internal handover point, understanding its implications is crucial for effective external freight forwarding. For businesses working with Ocean Cargo, comprehending FCD helps in accurately defining the scope of services required, from the moment goods are ready for collection at the factory gate to their final destination.

Unlike Incoterms (International Commercial Terms) which define responsibilities between a seller and a buyer in international trade, FCD is an internal operational term. It marks a critical internal milestone, indicating that the goods are now ready for the commercial team to manage their onward journey, whether that involves storage, consolidation, or immediate dispatch for [sea freight](https://oceancargo.co.uk/services/sea-freight/), [air freight](https://oceancargo.co.uk/services/air-freight/), or [road freight](https://oceancargo.co.uk/services/road-freight/).

## FCD vs. Incoterms: Clarifying the Distinction

It's vital to differentiate Factory Delivery (FCD) from commonly used Incoterms like EXW (Ex Works) or FCA (Free Carrier). While they might seem similar at first glance, their scope and application are fundamentally different:

- **Factory Delivery (FCD):** This is an internal term. It describes the handover of goods from the [Manufacturing](https://oceancargo.co.uk/industries/manufacturing-industrial "Manufacturing") department to another internal department (e.g., commercial, sales, logistics) within the same company. It does not involve an external buyer or seller and does not define responsibilities for international shipping costs, risks, or [customs clearance](https://oceancargo.co.uk/services/customs-compliance "customs clearance").
- **EXW (Ex Works):** An Incoterm where the seller makes the goods available at their own premises (e.g., factory, warehouse). The buyer bears all costs and risks involved in taking the goods from the seller's premises to the final destination. This is an external agreement between a seller and a buyer.
- **FCA (Free Carrier):** An Incoterm where the seller delivers the goods to the carrier or another person nominated by the buyer at the seller's premises or another named place. The seller clears the goods for export. This is also an external agreement between a seller and a buyer, offering more seller responsibility than EXW.

Ocean Cargo frequently handles shipments under EXW or FCA terms, where our role begins once the goods are ready at the factory or a designated collection point. Understanding that FCD precedes these external agreements helps our clients streamline their internal processes before engaging us for international transport.

## The Internal Process of Factory Delivery

The FCD process typically involves several key internal steps:

1. **Manufacturing Completion:** Goods are fully produced, inspected, and packaged according to internal standards.
2. **Quality Control Handover:** The [Manufacturing](https://oceancargo.co.uk/industries/manufacturing-industrial "Manufacturing") team formally passes the goods to an internal quality control or warehousing department.
3. **Internal Documentation:** Internal transfer documents are generated, detailing the quantity, type, and condition of the goods. This might include internal stock transfers or production completion reports.
4. **Availability Notification:** The [Manufacturing](https://oceancargo.co.uk/industries/manufacturing-industrial "Manufacturing") department notifies the commercial or logistics department that the goods are ready for collection or onward processing.
5. **Physical Transfer:** Goods are moved from the production line or immediate storage to a designated internal holding area, awaiting further instructions from the commercial team.

This internal handover is crucial for inventory management, production scheduling, and ultimately, for the commercial team to initiate the external shipping process with partners like Ocean Cargo.

## Why FCD Matters for Your Supply Chain

While an internal term, the concept of Factory Delivery has significant implications for the efficiency and cost-effectiveness of your overall supply chain:

- **Inventory Management:** FCD signals when goods are ready to be added to commercial inventory, impacting stock levels and reorder points.
- **Production Scheduling:** Clear FCD points help in optimising production schedules and aligning them with sales forecasts and shipping deadlines.
- **Cost Allocation:** Understanding the FCD point helps in accurately allocating internal costs between [Manufacturing](https://oceancargo.co.uk/industries/manufacturing-industrial "Manufacturing") and commercial operations.
- **Lead Time Calculation:** The time from FCD to the actual departure of goods (ex-factory) is a critical component of overall lead time, which Ocean Cargo helps to minimise through efficient logistics planning.
- **Supplier Performance:** For companies sourcing from multiple factories, consistent FCD adherence by suppliers (even if internal) is a key performance indicator.

Ocean Cargo works closely with clients to ensure a seamless transition from the FCD point to the final delivery. Whether you're shipping [excavators and diggers to the UAE](https://oceancargo.co.uk/countries/uae/excavators-diggers-uae) or [wind turbine components to Australia](https://oceancargo.co.uk/countries/australia/wind-turbine-components-blades-nacelles-tower-sections-australia), our expertise ensures that once your goods are ready at the factory, their journey is managed with precision.

## Optimising Your Logistics from the FCD Point Onwards with Ocean Cargo

Once your goods reach the Factory Delivery stage, Ocean Cargo steps in to transform internal readiness into global reach. Our comprehensive freight forwarding services are designed to take the complexity out of international shipping, starting from the moment your commercial team is ready to dispatch.

### Our Role Post-FCD:

1. **Collection & Consolidation:** We arrange for prompt collection from your factory or designated warehouse, whether it's a Full Container Load ([FCL](https://oceancargo.co.uk/services/sea-freight "FCL")) or Less than Container Load ([LCL](https://oceancargo.co.uk/services/sea-freight "LCL")) shipment. For [LCL](https://oceancargo.co.uk/services/sea-freight "LCL"), we can consolidate your goods with others to optimise costs.
2. **Route Optimisation:** Leveraging our extensive network and expertise, we identify the most efficient and cost-effective routes, considering transit times, carrier reliability, and your specific requirements. Our [sea freight services to Canada](https://oceancargo.co.uk/countries/canada/sea-freight-canada), for example, are meticulously planned for efficiency.
3. **Customs Compliance:** Our dedicated [customs compliance](https://oceancargo.co.uk/services/customs-compliance/) team handles all necessary documentation, declarations, and duties, ensuring smooth passage through borders. This includes specialist [customs brokerage for the USA](https://oceancargo.co.uk/countries/usa/customs-brokerage-usa).
4. **Warehousing & Distribution:** If required, we can provide warehousing solutions for short-term storage or onward distribution, ensuring your supply chain remains fluid.
5. **Real-time Tracking & Communication:** We provide transparent communication and real-time tracking, keeping you informed at every stage of your shipment's journey.
6. **Risk Management:** We advise on cargo insurance and implement robust measures to protect your goods from the factory gate to their final destination.

Ocean Cargo acts as an extension of your logistics team, ensuring that the internal efficiency achieved at the FCD stage translates into external shipping success. With over 25 years of experience, we understand the nuances of global trade and are committed to delivering reliability, precision, and trust.

## Frequently Asked Questions About Factory Delivery (FCD)

#### Is Factory Delivery (FCD) an Incoterm?

No, Factory Delivery (FCD) is not an Incoterm. Incoterms are internationally recognised rules that define the responsibilities of sellers and buyers for the delivery of goods under sales contracts. FCD, conversely, is an internal operational term used within a company to signify the handover of goods from the manufacturing department to another internal department, such as commercial or logistics, before external shipment.

#### How does FCD impact my shipping costs?

While FCD itself doesn't directly dictate external shipping costs (as it's an internal handover), it marks the point from which external shipping costs typically begin to accrue. For example, if Ocean Cargo is collecting goods under EXW terms, our charges would commence from the factory gate, shortly after the FCD point. An efficient FCD process can indirectly reduce overall costs by ensuring goods are ready for collection without delays.

#### Can Ocean Cargo help with logistics from the FCD point?

Absolutely. Ocean Cargo specialises in managing the entire external logistics process from the moment your goods are ready at the factory (post-FCD). We handle collection, freight, [customs clearance](https://oceancargo.co.uk/services/customs-compliance "customs clearance"), and final delivery, ensuring a seamless transition from your internal factory delivery to global distribution. Our expertise simplifies complex supply chains, allowing you to focus on your core business.

#### What documentation is involved in FCD?

FCD primarily involves internal documentation. This might include production completion reports, internal stock transfer notes, quality control sign-offs, and internal notifications to the commercial or logistics department. These documents confirm that the goods are ready for the next stage of the internal supply chain. For external shipping, Ocean Cargo will then assist with commercial invoices, packing lists, bills of lading, and other necessary export/import documents.

### Ready to simplify your global logistics?

Get advice and a quote for your next shipment. Contact the Ocean Cargo team to start shipping.

[Freight Quote](https://oceancargo.co.uk/contact-us)

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