When a company recognizes its strengths and weaknesses while skillfully playing to its advantages, success becomes attainable. Atlanta-based home fragrance marketer EnviroScent serves as a prime example. Under CEO Nick McKay's leadership, the company achieved an impressive 400% revenue growth last year and expects to maintain similar momentum in 2011.
From Struggle to Strategic Success
Three years ago, EnviroScent faced significant challenges when a major retailer wanted to substantially increase business. While typically welcome, McKay quickly realized their 20-person Atlanta team couldn't handle the manufacturing, production, and distribution demands internally.
"Previously, we aimed to be both the best home fragrance developer and manufacturer," McKay explained. However, rapid growth made this dual role unsustainable. The company ultimately decided to focus on its core business while leveraging third-party logistics provider (3PL) Saddle Creek Corp. for packaging, distribution, transportation, and logistics.
The Power of Strategic Partnership
Saddle Creek offered more than traditional 3PL services, including contract manufacturing capabilities. This partnership allowed EnviroScent to pursue strategic goals: expanding into new markets, launching products, improving operational efficiency, and reducing manufacturing and labor costs. The results proved remarkable.
While EnviroScent doesn't disclose financials as a private company, McKay confirmed strong profitability with revenue quadrupling year-over-year. This success stems partly from their 3PL collaboration, enabling focus on innovative product development in the $7 billion North American home fragrance market.
A Classic American Entrepreneurial Story
Founded in 2001 by former NASA primatologist and serial entrepreneur Jeff Sherwood and his wife Sharon, EnviroScent began with a simple vision: to make the world smell better. Their popular fragrance sticks enhance Christmas trees, homes, and floral arrangements.
Product lines include ScentStems (floral enhancers), ScentSicles (holiday fragrances mimicking fresh-cut evergreens), and ScentSticks (home fragrance products with pure essential oils). These items have featured in national events like the Rockefeller Center Christmas Tree Lighting.
Overcoming Seasonal Challenges
Seasonal demand nearly overwhelmed EnviroScent several years ago. After evaluating over a dozen 3PLs in spring 2010, they selected Saddle Creek. "No company combined pure manufacturing with 3PL services, so we assessed their ability to expand expertise," McKay noted, praising Saddle Creek's processes and ISO compliance.
When the partnership began in May 2010, EnviroScent's business was highly seasonal. "We maintained three principles for retail partners—on time, error-free, and complete," McKay emphasized. The collaboration proved flawless: "In three years, we've missed no deadlines, orders, or made errors."
Operational Transformation
Saddle Creek relocated EnviroScent's manufacturing to its Atlanta facility, beginning shipments by mid-July before peak season. The partnership implemented lean process improvements to meet aggressive 90-day goals for the new manufacturing workflow.
Scott Trahan, Saddle Creek's Atlanta GM, explained their core business involved warehousing, transportation, and packaging. EnviroScent's proposal led them into manufacturing. "The biggest challenge was adapting to their operations," Trahan said, noting the need for rapid response to changes.
Sustained Growth and Future Vision
By 2011, EnviroScent's business became less seasonal through new non-holiday products developed with Saddle Creek. "We ensure competitively priced manufacturing," McKay stated.
When asked about the 3PL's efficiency, McKay responded: "We set high expectations and aren't often surprised. We're very satisfied—it validates our partner selection process." He credits strong process focus and communication, with weekly meetings discussing product development rather than routine deliveries.
McKay advises potential outsourcing partners to "fit square pegs in square holes," planning 3-5 years ahead. "Core values must align from day one," he stressed. The successful partnership stems from shared values: long-term vision, financial stability, and detail-oriented experts.
The 3PL collaboration helped EnviroScent reduce labor needs by 20-30% while maintaining U.S. manufacturing—a rarity in their industry. Saddle Creek also gained manufacturing credibility with other clients.
Looking ahead, McKay aims for "continuous excellence"—scalability improvements, refined processes, and better performance metrics. "Speed is currency in our world," he concluded. "When opportunities arise, we evaluate and deploy resources accordingly. We deliver excellent products with a parallel supply chain."