When companies face growth bottlenecks, they must choose between struggling alone or leveraging external resources. The success story of EnviroScent, an Atlanta-based home fragrance company, provides a clear answer. Through strategic outsourcing of non-core operations, the company achieved remarkable growth—400% revenue increase in 2010 with similar projections for 2011. Behind these impressive numbers lies a pivotal strategic transformation.
Strategic Pivot: Focusing on Core Strengths
Three years ago, when a major retailer proposed significantly expanding its partnership, CEO Nick McKay recognized EnviroScent's limitations. With just 20 employees, the company couldn't meet the manufacturing, production, and distribution demands internally.
"We previously aimed to excel both as fragrance developers and manufacturers," McKay recalled. "But rapid growth made this dual role unsustainable."
The solution? Outsourcing non-core functions to industry leaders. "We decided to focus on what we do best," McKay emphasized. "For everything else, we partnered with best-in-class providers because we couldn't achieve world-class status in those areas ourselves."
Selecting the Right 3PL Partner
EnviroScent chose Saddle Creek Corp. as its third-party logistics (3PL) provider for packaging, distribution, and transportation. What set Saddle Creek apart was its additional contract manufacturing capabilities, creating a comprehensive service model that freed EnviroScent to focus on strategic priorities.
Tangible Benefits of 3PL Partnership
The collaboration delivered measurable advantages:
- Market expansion: Freed from operational constraints, EnviroScent could enter new markets and launch innovative products
- Operational efficiency: Saddle Creek's logistics expertise streamlined processes
- Cost reduction: Outsourced manufacturing significantly lowered production and labor expenses
While EnviroScent remains private and doesn't disclose profits, McKay confirmed profitability alongside quadrupled year-over-year revenue growth. The company now concentrates on product development in the $7 billion North American home fragrance market.
Product Portfolio
EnviroScent's product line includes:
- ScentStems: Floral bouquet enhancers
- ScentSicles: Christmas tree ornaments with authentic evergreen fragrances
- ScentSticks: Home fragrance sticks infused with essential oils
These products have graced national events like the Rockefeller Center Christmas Tree lighting ceremony.
The 3PL Partnership Genesis
Seasonal demand nearly overwhelmed EnviroScent when a major retailer increased orders. After evaluating about a dozen providers in spring 2010, the company selected Saddle Creek for its unique combination of manufacturing and logistics capabilities.
"We saw potential for complete supply chain management," McKay explained. The partnership began in May 2010, initially addressing peak seasonal demand around fall and winter holidays.
Operational Principles
McKay established three non-negotiable standards for retail partnerships: "On time, zero errors, complete. Quality and zero defects are mandatory." Remarkably, in three years of collaboration, the company has never missed a deadline, order, or made an error.
Supply Chain Optimization
Saddle Creek relocated EnviroScent's manufacturing to its Atlanta facility by July 2010, before peak season. The partners implemented lean process improvements to meet aggressive 90-day targets, creating an integrated solution covering materials sourcing, light manufacturing, order fulfillment, warehousing, and distribution.
The Partner's Perspective
Scott Trahan, Saddle Creek's Atlanta GM, noted that while warehousing and transportation were core competencies, EnviroScent's needs prompted expansion into manufacturing. "It happened organically, with both short-term and long-term planning," he said.
The biggest adjustment was adapting to EnviroScent's entrepreneurial pace. "We had to respond quickly to changing demands and new products," Trahan explained.
Beyond Seasonality
By 2011, with Saddle Creek's support, EnviroScent balanced demand across twelve months by introducing non-holiday products. "We ensure competitively priced manufacturing," McKay noted.
Evaluating Success
When asked about exceeding expectations, McKay responded: "We set high standards and weren't surprised—just very satisfied. This validates our selection process." Regular onsite meetings focused not on routine logistics but on R&D and product line management.
Advice for Outsourcing
McKay advises potential outsourcers to "fit square pegs in square holes" by planning 3-5 years ahead. "It's not just about products and manufacturing—core values must align from day one," he stressed. Shared long-term vision, short-term goals, financial stability, and detail-oriented teams made the Saddle Creek partnership successful.
Domestic Manufacturing Advantage
The arrangement maintains EnviroScent's U.S. manufacturing status—a rarity in the industry. Beyond meeting deadlines, the 3PL partnership generated cost savings, process efficiencies, and distribution improvements. Labor requirements decreased 20-30%, enabling expanded collaboration into design and product development.
Mutual Benefits
For Saddle Creek, the partnership demonstrated expanded capabilities to potential clients. "We get the 'wow factor' from prospects who didn't realize we could do this," Trahan noted.
Future Vision
McKay's focus remains on "sustained excellence"—scalability, continuous process improvement, and performance metrics. While committed to U.S. production, EnviroScent aims for global distribution through refined processes. "Speed is our currency," McKay concluded. "When opportunities arise, we evaluate and deploy resources to meet them with outstanding products supported by a parallel supply chain."