Third-Party Logistics (3PL) providers are external service companies that manage logistics functions such as warehousing, transportation, and distribution on behalf of their clients. Outsourcing these functions allows companies to leverage specialized expertise, technology, and infrastructure without heavy capital investment. 3PL partnerships can improve inventory optimization by providing scalable storage, flexible transportation options, and advanced fulfillment capabilities. They often use sophisticated inventory management systems and data analytics to enhance visibility and efficiency, enabling clients to focus on core business activities while maintaining optimal inventory levels.