Apart from raw materials, finished goods are the other major input in the manufacturing process that involve transportation costs. The context explains that in industries like iron and steel, the finished products are heavy and bulky, just like the raw materials.

These finished goods require an efficient transport network for their distribution to the markets and consumers. Since both raw materials and finished products are heavy, they entail heavy transportation costs. This is why the location of steel plants must consider proximity to raw materials as well as access to markets to minimise these transportation costs.