Third-party logistics (3PL) refers to the outsourcing of logistics and supply chain management functions to a specialized service provider. Companies use 3PL providers to handle various tasks such as transportation, warehousing, inventory management, and order fulfillment. This allows businesses to focus on their core activities while leveraging the expertise and resources of logistics professionals. 3PL providers can offer flexible solutions tailored to specific business needs, helping companies reduce costs and improve efficiency. By partnering with a 3PL provider, businesses can access advanced technology, industry knowledge, and a broader network, ultimately enhancing their overall supply chain performance.