If business growth were a voyage, what would be the most critical skill for the captain? Is it the ability to read the winds or mastery of shipbuilding? Nick McKay, CEO of EnviroScent, demonstrates through his experience that true wisdom lies in recognizing one's strengths and weaknesses—and knowing when to leverage external expertise. The Atlanta-based home fragrance company achieved a staggering 400% revenue growth last year, a success rooted in strategic choices and collaborative partnerships.
From "Jack-of-All-Trades" to Strategic Focus: A Pivotal Transformation
Three years ago, a major retailer approached EnviroScent with an offer to significantly increase orders. While this might have been cause for celebration, McKay recognized a critical challenge: with just 20 employees, the company lacked the capacity to handle large-scale production, manufacturing, and distribution internally. "Any company can do anything, but no company can do everything," McKay reflected. "We made a strategic decision to focus on what we excelled at and partner with best-in-class companies for functions where we couldn’t achieve world-class standards."
The 3PL Advantage: Unlocking Growth Potential
EnviroScent outsourced packaging, distribution, and logistics to third-party logistics provider (3PL) Saddle Creek Corp., which unexpectedly offered contract manufacturing capabilities as well. This partnership allowed EnviroScent to redirect its focus toward strategic priorities: market expansion, product innovation, operational efficiency, and cost reduction. The results were transformative. Though privately held and not disclosing specific profits, McKay confirmed record-breaking revenue growth—quadrupling year-over-year—while solidifying its position in the $7 billion North American home fragrance market.
Core Principles Behind the Success
- Focus on Core Competencies: Outsourcing non-core operations enabled concentrated investment in R&D and market expansion.
- Strategic Partner Selection: Saddle Creek’s dual capabilities in logistics and manufacturing provided an integrated solution.
- Supply Chain Optimization: Continuous improvements driven by the 3PL partnership enhanced efficiency and reduced costs.
From NASA to Fragrance Entrepreneurship: A Founder’s Vision
EnviroScent’s origins trace back to 2001, when Jeff Sherwood, a former NASA primatologist and serial entrepreneur, co-founded the company with his wife Sharon. Their innovative products—including Scent-Stems (floral enhancers), ScentSicles (holiday fragrance infusers), and ScentSticks (home fragrance diffusers)—gained national prominence, featured in events like the Rockefeller Center Christmas Tree Lighting. However, seasonal demand fluctuations nearly overwhelmed their operations until outsourcing provided a lifeline.
Selecting the Right Partner: A Rigorous Process
In 2010, EnviroScent evaluated over a dozen 3PLs before choosing Saddle Creek for its ISO-compliant processes and scalability in contract manufacturing. "We saw an emerging opportunity for them to become a turnkey supply chain manager for companies like ours," McKay explained. The transition was swift: by July 2010, Saddle Creek assumed manufacturing operations at its Atlanta facility, ensuring zero errors or missed deadlines throughout the peak season.
Operational Excellence and Cultural Alignment
Weekly on-site meetings between the teams prioritized proactive planning over reactive problem-solving. "Discussions focused on R&D and product line management, not just order fulfillment," McKay noted. He emphasized selecting partners with aligned long-term values: "It’s about putting a square peg in a square hole. Shared vision and operational discipline are non-negotiable."
The collaboration reduced EnviroScent’s labor needs by 20–30% while maintaining U.S.-based production—a rarity in the industry. For Saddle Creek, the partnership opened doors to new clients seeking manufacturing support. As McKay summarized: "Speed is our currency. With a resilient supply chain, we can seize opportunities while delivering excellence."