Your Saturday Briefing: Trumps Comeback Plan, Wall Street Whistles Away, Londons Investment Appeal Is Unraveling as Arm Heads to the US, British Parents Turn to Home Equity to Help Young Buy Property, Japanese Unions Seek Biggest Pay Rise in 25 Years for Workers, Sorry, Fed, Most US Mortgage Rates Were Locked In During Pandemic Lows, Panic Over Metals for EVs Goes All the Way to Automakers C-Suites, Ex-Goldman Banker Ordered to Forfeit $43.7 Million Over 1MDB Bribery Fraud, Twitter Revenue, Earnings Fell About 40% in December, WSJ Says, John Malone andCharter Directors Agree to $87.5 Million Settlement, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, Between Rounds of Golf, Trumps Searching for the Perfect DeSantis Diss, Your Saturday UK Briefing: Sunak Chalks Up a Win as the Budget Looms, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, Tom Sizemore, 'Saving Private Ryan' Actor, Dies at 61, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece. His company has been a shining example of success amid tough global economic conditions. For me its being in the business, with people and in particular with customers. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. In addition, we use tracking cookies, which can collect information about you and follow your internet activity within our website, and possibly outside our website as well. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. They know that now and can alter those decisions as they head into the week in front of them. Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. As you get bigger, staff engagement and culture becomes more difficult. Mainfreight shareholders would be similarly pleased. [17], "Shareholding Information - Mainfreight Limited", "Mainfreight co-founder Neil Graham dies", "Road transport regulation a controversial measure to protect railways", "Mainfreight announces agreement to acquire Halford International", "Mainfreight breaks into Europe with $227m acquisition", "Mainfreight sues for $18m after shock client loss", "Mainfreight gets $14m payout - drops Euro claim", "The Wim Bosman Group becomes Mainfreight", "Mainfreight sells Pan Orient Project Logistics and its 75% shareholding in LEP (New Zealand and Australia) for over A$83 million", "Mainfreight Limited (Mainfreight) completes sale of Pan Orient Project Logistics", "Target Logistics, Inc. Agrees to be Acquired by Mainfreight Limited", https://en.wikipedia.org/w/index.php?title=Mainfreight&oldid=1136159997, Daily Freight (NZ), Carotrans (Worldwide), Owens (AU/NZ), ChemCouriers (AU/NZ) Mainfreight Europe (EU), This page was last edited on 29 January 2023, at 01:07. Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. Media enquiries As a young salesperson aged 19, I couldnt make a cold call. How do you maintain a positive culture and a time of crisis? Engage via Email. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europes Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. Its a huge level of success and theres satisfaction you get from that. Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. They established agencies in the early days with Australian, Pacific Island and United States freight forwarders and the established agents in most major trading partner countries of New Zealand. But, he said the first seven weeks of trading in the current year has been at similar levels to the past six months. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? Don from Mainfreight talks to Fisher Funds. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. What have we got right? "I think I've always enjoyed business, from an early age, so to be involved like I am today has been great. We're trying to break all that down.". The branch managers are the kings and queens, by the way, because thats where the moneys made the national team is just there to support the branch managers. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. [9], Within its announcement, the Mainfreight sad, "Wim Bosman is a well respected, profitable organisation which will provide Mainfreight with a significant European presence and opportunity to further grow its supply chain logistic services throughout the world. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. Revenues were up $448.4m to $3.5 billion, a 14.5% increase on the prior year, with 76% of that now generated outside New Zealand. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. By becoming a supporter, you'll be helping us expand our independent journalism for the business community. For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. Mainfreight chief executive Don Braid says New Zealand needs to slash the number of its container ports to a 'maximum' of three to avoid being side-lined by major shippers.The 18-year veteran CEO of the NZX-listed multinational logistics company told a supply chain forum in Auckland on Wednesday that container cranes sitting at most of the So youre not only giving them a responsibility for the P&L, but youre also giving them the responsibility of whos going to join our family. If you trust your people, look after them and give them responsibility, theyll deliver. Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. Zac: As the leader of Mainfreight, what do you personally focus on to get the team going in the right direction? Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? | [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. What we put in place here in New Zealand became the blueprint for the organization around the world. Hi Tanya. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. FINALIST Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. Regionally, the NZ business saw an increase of 11.5% in profit before tax to $97.8m, though supply chain capacity into and from NZ remains congested, and the company is frustrated with international shipping lines". Don Braid. Zac: Lets talk more about those weekly P&Ls. Weve needed to adjust, particularly in the international sector, air freight charters rather than just normal air freight our people had never had any experience in chartering a full plane. Us taking away that clock was about responsibility and about taking away that control from head office. DCB had a staff base of five employees on the date of acquisition, however, staff was expected to rise to seven employees. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. don@mainfreight.com; Profile. | Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. Investment has to come year on year it cant just come as a bribe at election time., Embracing the company motto that Good enough is never enough, Braid is focused on fulfilling a vision to make Mainfreight a 100-year company. Don: Well, the numbers never lie, right? And thats why we travel a lot when you visit, you can smell the morale in an instant. Everyone stands on their own two feet. Having started out with two employees and one truck in 1978, the company now employs more than 7500 people in 22 countries and generated a net profit of $103m in the 2017 financial year on operating revenue of $2.33 billion. A licence from New Zealand Railways Corporation was needed to carry freight over 150km. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Get in touch with us directly. And sometimes, particularly so in New Zealand, they see the market ultimately being as quite small, when in fact their product or service is good enough to take to the world. Chosen from New Zealand's top companies, this year's Deloitte . | As Group Managing Director of Mainfreight Limited - one of New Zealands largest freight companies - Don Braid joins us to share key insights for directors into the changing patterns of these chains and what the future may hold. Don: I think its quite a long way off. It is our strong belief that the momentum we have will continue, and will develop at a faster pace than we have experienced in the past, thanks to our people, our network and our culture. Theres a video of it happening and what was really exciting was once the clock came off the wall, you could hear the laughter and the clapping and the voices of approval from those who were watching. Braid goes to great lengths to stress that the company's success is the result of the efforts of its entire, 5167-member "team" around the world. If theyre not on their game, you can see that really quickly so you either get alongside them and help them or if it goes on for too long you realise weve got the wrong person in the wrong role and weve got to change them. Weve made this article available for free. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. At the end of the day, the decisions they made will be seen in the weekly results. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, No Major Offer Expected on Childcare in UK Budget, Biden Gives Medal of Honor to Trailblazing Special Forces Member, Climate Change Is Launching a MutantSeed Space Race, UK Braces for Rare Weather Event That Risks Late-Winter Freeze, What Do You Want to See in a Covid Memorial? They have over 8500 staff in 280+ locations across 28 countries, so it was pretty cool (and humbling) for us to be able to chat to Don with some of our Business Changing clients recently. Please note that with cookies disabled you will have a degraded experience with some features. You may withdraw your consent at any time. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. Don: With this decentralized approach, those P&Ls were talking about, theyre part of everyday life at Mainfreight those P&Ls go up on the cafeteria wall. What do those customers look for from us? Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. Her knowledge of high-tech companies is a welcome addition to the Boards capabilities, as is her familiarity with the complexities of acquisitions, and steering companies through growth and change. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. Shareholders would be glad to know that the company has improved itself over the last few years. It has been listed on the New Zealand Exchange since 1996. Mainfreight people, he says, don't "live in question marks". New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. Mainfreight is the fourth largest company in NZ, doing over $3 billion in sales and over $300 million in EBITDA, with physical assets of $1.5 billion and debt of less than $200 million. So take a peek at this free list of interesting companies. And if you dont make a profit, theres no bonus that year. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. Youve got to have good outlets. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. The opportunities offshore and the populations that exist in some of those other countries are large; you only have to get something half right in some of those countries and youre growing a big business compared to what you have here in New Zealand. Weekly operational reports are posted on the wall of the company cafeteria in Otahuhu, where all team members, including Braid, eat at a single, long table. In 1994 Mainfreight purchased the business, and Don went on to hold various senior management roles at Mainfreight prior to his appointment as Managing Director in 2000. Then we got some momentum and we saw some of the other regions doing better than what we thought so we felt better about it. Managing director Don Braid said the result was pleasing, particularly in light of supply chain congestion and ongoing lockdown disruptions in most of Mainfreight's markets. The Mainfreight board is intent on doubling revenue to $2 billion by 2015, mostly from international earnings, and Mr Braid envisages at least 500 branches before too long. Copyright 2023 Institute of Directors Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. After receiving the 2016 Infinz Leadership Award he told staff if this is a tick in the box for the way we have done things or are trying to do, and for what were trying to create, then well take that tick. Proud of its family ties, Mainfreight also employs Braids sons, Jason and Corey. But they had different regulations for different countries: it was a metre between the two trucks, it was a metre and half in Belgium, and it was two meters in France. Don has led the Mainfreight team through a significant period of change and expansion to become the successful global supply chain logistics provider it is today, with businesses operating in over 214 branches throughout New Zealand, Australia, Europe, Asia and the United States. Biography He has led the company in strengthening its global logistics business and ensuring an increased diversification of revenue streams across many countries, trade lanes and activities provides natural protection for earnings. We aim to bring you long-term focused analysis driven by fundamental data. See ourstandard terms and conditionsfor more information. So the idea was to make sure that our people were right, that our systems were ok, what customers could trade, and how we could help those customers as an essential service. "I don't think any of those things are really of interest to this," he says. Braid, who joined Mainfreight through its purchase of Daily Freightways, says the company hasn't let the last few years of economic upheaval dull its ambitions. Zac: How do you prioritise where to spend your time in a normal week? Business in the Americas also saw an improved performance, with a 29.7% increase in profit to US$25.93m, with Mainfreight's air and ocean division benefiting from resurgent demand from customers and market share gains in the US. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. Bryan has a wealth of experience, both in executive and board roles. And what do you believe leaders need to excel at? 11/5/2022 3:33 PM. The multinational logistics and transport group announced a year end dividend of 45 cents a share, taking the full dividend for the year to 75c, up 27% on the prior year. [5] When deregulation of land transport occurred in October 1982, Mainfreight quickly took advantage of the opportunities presented and won a large share of the freight market. The trick is to decentralize it and to give them control of the profit and loss, allow them to have sufficient KPIs, and measurement systems to monitor those as quickly as possible so that nothing gets out of control. Don Braid (Mainfreight) Credit: Mainfreight . "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". Mainfreight is the fourth largest company in NZ, doing over $3 billion in sales and over $300 million in EBITDA, with physical assets of $1.5 billion and debt of less than $200 million. "If you allow the recession to roll over the top of you there's a great chance it will.". What are the things you do that maybe others dont do that actually make you lead this organization? Agreement with print tech giant Canon saves college thousands. Thanks Mr Braid for sharing your knowledge and insight. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys High School and has over 30 years experience in freight forwarding and logistics both New Zealand and internationally. [3] [4] When the company was founded it entered a highly regulated transport market. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. Other finalists were: Briscoe Group managing director Rod Duke, NZX chief executive Mark Weldon, ex-Fonterra chief executive Andrew Ferrier, Xero founder Rod Drury, LanzaTech chief executive Jennifer Holmgren, Ngai Tahu Holdings Corp chief executive Greg Campbell, TZ1 founding chief executive and former Microsoft New Zealand chief executive Helen Robinson, Farmers/Whitcoulls owners David and Anne Norman and Ryman Healthcare chief executive Simon Challies. Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world. Target operate domestic and international time-sensitive freight-forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services. And he should know, having spent his entire working life in the freight industry. He brings strong financial skills and business acumen to the role. The firms European business where it has a footprint of more than 330,000 sqm of warehousing saw a 23.4% improvement in profit before tax to 22.35m, despite extensive lockdowns across the continent, many of which were ongoing. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays.