A large number of producers supply on consignment to their distribution partners. This is not a taxable sale, and if it is treated as warehouse inventory then you will not know where it is or must treat hundreds of distributors as warehouses. You need a consignment feature with Sales that allows you to park and track stock at your resellers
Joshua Barton shared this idea
Our business receives Consignment from Vendors and also ships consignment to Customers.
It is a critical part of our business.