Both Forwards and Futures are based on delivery at some point in the future, but vary considerably.
In commodity markets, buyers and sellers can use forward contracts (agreements to deliver a specific product at some point in the future) in place of exchange-traded futures, but there are key differences to be aware of.
First and foremost, forwards are bilateral, customized, and privately negotiated agreements, meaning they are only between the two parties involved (the buyer and seller) so if one side or the other cannot fulfill their portion of the agreement, both sides are affected.
Additionally, generally speaking, forward contracts require the physical delivery of the contracts agreed upon, whereas in on-exchange futures, generally less than 3% of futures contracts result in physical delivery*.
*https://invest-faq.com/futures-delivery/?t