A source to back you up, this is precisely how it works. The CME link goes into more detail on how physical delivery works for base metals.
Other physically settled commodity contract have different delivery locations, /CL (WTI crude) delivery takes place at a terminal and storage facility in Cushing, OK.
Oil and gas also have the benefit of published prices for most pipeline transport, although you still need a buyer/terminal that's physically connected to the network to take delivery.
