NFTs are just a way to represent something unique on a blockchain. The smell comes from the pixel art NFTs.
Your position on a uniswap v3 pair is represented as an NFT (no pixels associated), while v2 used ERC20 tokens (fungible)
Suppose you own a car rental. You can represent the available cars as NFTs and use a blockchain to make reservations and payments
NFTs offer the ability to separate ownership and management of a thing from the business that created that thing. That makes no sense for a company that has inventory they personally control and doesn't want people to resell for liability reasons.
Someone made a similar argument about Steam adopting NFTs a while back, which made no (business) sense to me.
And either give that information away to your competitors if the chain is public, or just implement a far more complex tech that could have been a straightforward database if it's private. Either way you lose.
I bought some lumber a few weeks ago. Bought a cedar board that they had in their inventory, went out to the lumberyard to find they were out of stock. Ended up swapping the it out for some cedar deck board they happened to have
Warehouse inventory/control is a great example of something that would be an incredibly poor fit for blockchain.