When a business recognizes its strengths and weaknesses, success often follows closely behind. Atlanta-based home fragrance company EnviroScent exemplifies this principle. Under CEO Nick McKay's leadership, the rapidly growing firm achieved an impressive 400% revenue increase last year and expects to maintain similar growth through 2011.
Growing Pains Lead to Strategic Shift
McKay reveals that EnviroScent's rapid expansion didn't come without challenges. Three years ago, a major retailer wanted to significantly increase business with the company. While typically welcome news, McKay quickly realized his 20-person Atlanta team couldn't handle the manufacturing, production, and distribution demands internally.
"Our original goal was to excel both as fragrance developers and manufacturers," McKay explained. "But explosive growth made maintaining this dual identity unsustainable."
The solution came through focusing on core competencies while partnering with third-party logistics provider (3PL) Saddle Creek Corp. for packaging, distribution, transportation, and surprisingly—contract manufacturing capabilities that exceeded traditional 3PL services.
The Power of Specialization
This strategic partnership allowed EnviroScent to concentrate on big-picture initiatives: market expansion, new product development, operational efficiency, and cost reduction. The results speak for themselves—while remaining privately held and not disclosing specific profits, McKay confirms revenues have quadrupled year-over-year.
EnviroScent's product lineup includes innovative offerings like ScentStems for floral arrangements, ScentSicles that recreate authentic evergreen aromas for holiday decorations, and ScentSticks for home fragrance enhancement. These products have graced national events including the Rockefeller Center Christmas Tree lighting ceremony.
Seasonal Challenges Demand Creative Solutions
The company's seasonal product demand nearly overwhelmed operations several years ago. After evaluating over a dozen providers in spring 2010, EnviroScent selected Saddle Creek for its unique combination of logistics expertise and manufacturing adaptability.
"No provider perfectly combined manufacturing and 3PL services," McKay noted. "We assessed their ability to expand capabilities, particularly in processes and ISO compliance for co-packing."
The transition occurred during peak season preparation. Saddle Creek relocated manufacturing operations to its Atlanta facility by mid-May 2010 and began shipping from the new location by mid-July—just before the holiday rush.
Operational Excellence Through Partnership
The collaboration's success metrics are striking: "In three years with our 3PL partner, we've missed zero deadlines, zero orders, and made zero errors," McKay stated proudly.
Saddle Creek implemented a comprehensive solution covering material sourcing, light manufacturing, order fulfillment, warehousing, and distribution. This allowed EnviroScent to maintain its "Made in America" distinction while achieving 20-30% labor cost reductions through outsourced manufacturing controls.
Scott Trahan, Saddle Creek's Atlanta General Manager, acknowledged the learning curve: "We adapted from serving larger organizations to supporting a smaller, entrepreneurial company with rapidly changing needs and new product introductions."
Sustaining Competitive Advantage
By 2011, EnviroScent successfully balanced its previously holiday-centric business through new year-round product offerings developed with Saddle Creek's support. "We maintain competitive pricing while ensuring quality," McKay emphasized.
When asked about exceeding expectations, McKay responded: "We set high standards for ourselves and partners. While not surprised, we're extremely satisfied—validating our thorough partner selection process."
Weekly onsite meetings focusing on R&D and product line management rather than routine logistics exemplify the partnership's strategic depth. "Informed decision-making optimizes manufacturing," McKay explained. "Shared core values around long-term vision, financial stability, and attention to detail make this work."
McKay advises companies considering outsourcing to "match square pegs with square holes"—ensuring alignment with partners who share fundamental values and can support 3-5 year growth plans. "It's not just about products and manufacturing," he concluded. "From day one, the core values must align—otherwise failure becomes inevitable."