Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. Sam Knowles Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. What are the things you do that maybe others dont do that actually make you lead this organization? Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. We were lucky enough to have a really incredible chat with Mainfreight CEO Don Braid about what he has learnt as the CEO of Mainfreight. Richard has been elected a fellow of the Chartered Institute of Logistics and Transport. Part of our recruitment process is to get them to go through the system and learn the business from the floor up: you start by pushing a broom or running documents to Customs. Group Managing Director at Mainfreight NZ . What more could I be doing in the business to actually grow my revenues in these difficult times? Learn more. I think with a driverless truck, well lose that ability of interaction with the customer on pickup or on delivery. In this episode, Bronson explains how the lessons he learned in the kitchen translated to the booth, the reason money can never be the motivation for creating art, and why he believes that imperfections are the best part of any masterpiece. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. 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. So everything that we do is about being here for a long time. Well known for his mental and physical toughness, Braid is often seen working out at The Atrium Club in downtown Auckland, which offers real world fitness for men. His sartorial style was also recognised in 2006 when he was judged the national winner of the NBR Working Style Best Dressed Businessman Awards. You need to have been there 12 months to earn the full bonus that everybody else gets. [8], Headquartered in 's-Heerenberg, The Netherlands, Wim Bosman is privately held and operates more than 1,000 transport units, manage more than 275,000m2 of cross-docking facilities and warehouse area, and employ roughly 1,414 staff within 14 branches located in The Netherlands, Belgium, France, Romania, Poland, and Russia. Zac: What is the Mainfreight way when it comes to culture? That was uppermost in our mind. Bruce would be the first person to say he needed to have great leadership following him if he wanted to bring his hundred year vision to life. Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. Cash flow is essential for any business survival. Alternatively, email editorial-team@simplywallst.com. Its about the other employees seeing the numbers; dont forget, we share those profits with our people too so theres internal pressure to perform too. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". Don: With this event in front of us right now, I think cash is king, and the collection of cash. Under his guidance, the freight and logistics company has grown and expanded to now run operations in New Zealand, Australia, Asia and the United States. 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. 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. 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. Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. PO Box 65092, Mairangi Bay, Auckland, New Zealand, Top 200 : Deloitte/Management magazine Executive of the Year Don Braid Clear Vision. [13] The transaction was completed on 6 June 2007. See guidance for chairs and directors. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. Im sure that everyone on this video call will be wanting to shake hands and sit across the table and deal face to face because of the body language thing and being able to ask more questions, whereas the video is quite limiting. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. Mainfreight people, he says, don't "live in question marks". We offer lots of training as well, internally and externally. [11], Since 2011, Mainfreight, under the Wim Bosman name, have opened new branches in Bergen op Zoom in The Netherlands, Cluj-Napoca in Romania, Frankfurt and Gelsenkirchen in Germany, London in United Kingdom, and Pozna/Lubo in Poland. Zac: Whats a bit of business advice you can share? Target operate domestic and international time-sensitive freight-forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services. By the way, its not just about us seeing those numbers. You can be profitable and not collect the cash and go broke. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. Yes, wed committed an enormous amount of capital expenditure coming into this new financial year, but we were in good shape in that the balance sheet looks pretty good. So you need to be committed for the long term.The clich about the beach, the BMW and the boat it looks pretty attractive after 10 years of hard work but what could you have created after a hundred years and have you got something thats a bit special?I think you need passion, energy, belief and the ability to develop people to run the business for the future. Photo / Supplied . Its the individuals responsibility to arrive on time and stay until the jobs finished. [3][4], When the company was founded it entered a highly regulated transport market. Its even more exciting doing that in offshore markets with a really big customer where youre actually sitting in front of them and we know we will turn our industry upside down by winning quite large business off the incumbents. So take a peek at this free list of interesting companies. We tackle critical leadership, management and economic issues as well as profiling successful local and global leaders. Is our service or a product still current? Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. That's just a smallish increase of 6.9% on last year. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. DCB had a staff base of five employees on the date of acquisition, however, staff was expected to rise to seven employees. It now has 22 company depots in Australia and relies on agents and third parties in the Northern Territory, Tasmania and some of regional Australia. Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. Pot vote has Oklahoma hungry to rake in green from Texas, How Ron DeSantis misreads Corporate America, Tesla recalls 3,470 Model Y vehicles over loose bolts, 3 big things in investing you might have missed this week, UPDATE 1-North Korea says US causing international arms control collapse. He is an outstandingly consistent and capable chief executive. I believe that I shouldnt ask my colleagues/work mates/ team to do any task I would not do myself or know how to do. Braid consistently delivers for shareholders and stakeholders alike. 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". How are we changing the business accordingly? The company is growing EPS and total shareholder returns have been pleasing. Click on [Agree] or [Disagree] to accept or refuse cookies. And I think ultimately, yes, Im responsible for the business, but I enjoy what I do and having great people and a good lifestyle where I can stay fit and have some fun means the stress levels arent that high. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . I learned that early in the piece and I think its stood me in good stead. Copyright 2023 Institute of Directors Mainfreight has international operations in the United States through CaroTrans International and most recently Mainfreight International businesses after the 2007 acquisition of Target Logistics, in Asia (nine branches in China, one each in Taiwan, Singapore and Hong Kong). 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, operating in 26 countries around the world, with $3+ billion in sales revenue, and he leads a team of 9,240 passionate Mainfreight people all around the world. Don from Mainfreight talks to Fisher Funds. Even Europe's ongoing economic turmoil fails to dampen Braid's optimism, despite the Kiwi logistics operator having spent more than $200 million buying a Netherlands-based freight firm earlier this year, giving it a European footprint for the first time in its more than three-decade history. And what do you believe leaders need to excel at? Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. 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. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. [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. Don: The culture is really important and our culture starts with those closest to the customer. And then its about exploring the long game. In 2006 the New Zealand Mainfreight International and Owens International businesses were also merged to make Mainfreight Owens International Ltd (now Mainfreight International). We use functional and analytical cookies on our website to offer an optimal user experience. "I probably wasn't qualified enough to go to university," Braid says. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Initially wed take 10% of that profit and share it equally with everybody in the branch but as weve developed and gotten a little more sophisticated, weve applied quality stats to the numbers. Grant Samuel & Associates Ltd. Kate brings to the Board her broad financial and analytical experience acquired in a range of industries, both in New Zealand and overseas. He has clear vision of what it will take to navigate the unforgiving roads and heavy traffic of the international freight marketplace and so far he has kept this business right on track. Youve got to break it down. Will His AI Plans Be Any Different? It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Zac: Can you share what some of the great ideas youve actually brought from overseas have been? Get in touch with us directly. They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. This article by Simply Wall St is general in nature. Hi Tanya. FINALIST By becoming a supporter, you'll be helping us expand our independent journalism for the business community. Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. In his results commentary, Braid said the results were pleasing in light of initial supply chain disruptions during the early part of the year, on the back of lockdowns in response to the global pandemic. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. Braid recalls with horror the memory of listening to a chief executive refer to her workers as "FTEs" - full-time equivalents - during a radio interview. Don Braid. And he should know, having spent his entire working life in the freight industry. Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. Should it change? We have been monitoring government updates regarding COVID-19 and are keeping up to date with Ministry of Health guidance with regard to events and public gatherings. Thanks Mr Braid for sharing your knowledge and insight. Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? It doesnt matter what the worlds thrown at them, theyve shown they are capable of dealing with it. Educated at Timaru Boys High School, Braid has been described as possibly the most self-effacing leader of major listed company in New Zealand and is widely regarded as straight-talking and strong leader. Youve got to have good outlets. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for our customers. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? He is 100 percent dedicated to Mainfreight and its future and has led the company in consolidating its position as an international business, progress which will bring rewards not only for that company but for New Zealand as it continues to expand offshore. Don: The recruitment of our people sits with the branch managers. 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. Spearheading the management team at New Zealands largest supply chain logistics and transport company has paid off handsomely for Mainfreight group managing director Don Braid. Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. I suppose were grooming people all the time for those loaded leadership roles. Mainfreight's net profit rose by $40.1m to $188.1m. Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. I feed off that and suppose the people in our business like seeing that and see it as an example and follow. In 2008, the United States locations were re-branded as Mainfreight USA. "We need to try and paint the picture around Mainfreight here and what Mainfreight is, that to me is of more interest than whether I like rugby or cricket. He attributed the. Media enquiries "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. Mainfreights two new build warehouses, a 50,000 square metre facility in Sydney and 30,000sqm build in Melbourne, are scheduled for completion by end next year. I think our owner drivers are a key component of the relationship with the customer. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . The CEO of Mainfreight Limited (NZSE:MFT) is Don Braid, and this article examines the executive's compensation against the backdrop of overall company performance. Mainfreight's straight-talking group managing director has an infectious zest for business. Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. Another attribute is straight talking. In the leadup to the 2017 election, Braid said the country needed to be run by visionaries rather than a couple of accountants and he took aim at Nationals pledge to spend an extra $2.6b on Auckland transport. That's ambitious, even . Required fields are marked *. New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. Although Plested remains the largest shareholder with a 16% stake worth $395m, Braids more modest 2.79% stake is still worth about $70m supplemented by annual remuneration of $2.2m in 2017. Formerly Halford Young, Halford is a private logistics company and freight forwarder with operations and networks in Australia and New Zealand, Japan, Germany, throughout Asia and the United States.[6]. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. As a young salesperson aged 19, I couldnt make a cold call. In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. For further information, please contact Don Braid, Group Managing Director, telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. [14], In September 2007, it was reported by Business Wire that Mainfreight had signed a merger agreement with NYSE American-listed Target Logistics for $2.50 a share; for a total of US$54 million. Terms of use If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. With well-established locations that include China, Hong Kong, Taiwan, Malaysia, Thailand, Vietnam, Singapore, Japan and Korea, the Mainfreight global network continues to expand year over year. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. d***@mainfreight.com. 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. Some of the leading players in the listed retirement sector have been raising capital. For me its being in the business, with people and in particular with customers. For us its about pushing the decision-making as close to the customer as possible, getting those people to make decisions rather than pushing them upstairs for someone else to make. The key for me is to be in the business as much as possible, to be visible. Subscribe to protect quality NZ journalism. We're trying to break all that down.". Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. Mainfreight will pay a discretionary bonus of $43.9 million, up 61% from last year's bonus of $27.3m, after a record result to March which saw net profit up by $40.1m to $188.1m. Zac: Don, what makes you good? Mainfreight will pay a discretionary bonus of $43.9 million, up 61% from last year's bonus of $27.3m, after a record result to March which saw net profit up by $40.1m to $188.1m. 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. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. I just have a belief and determination that weve got a pretty good business here. So weve got eight and a half thousand people and 282 locations. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. "I think I've always enjoyed business, from an early age, so to be involved like I am today has been great. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. Not bad for a Kiwi trucking company! But well and behold, were in the perfect position not a lot of debt, trading really well, coming off a really good financial year the year before. Net capex totaled $155m for the period, of which land and buildings accounted for $111.7m, plant and equipment $26.6m and IT at $16.7m. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own name, which reveals to us that they have a significant personal stake in the company. Concerned about the content? 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. The NZ team, who had really done a great job through the Kaikoura and Christchurch earthquakes, quickly put together a plan on how to react. After the full acquisition that took place August 2007, Mainfreight Asia quickly gained momentum in the Air and Ocean sector, driving business in China and Southeast Asia. CEO compensation can have a massive impact on performance, but it's just one element. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. Don Braid For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. By using this website you consent to the use of cookies in accordance with our privacy policy. I'm pleased I didn't do anything else.". Don: I think empathy is really important. We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. COVID-19 has had a significant impact on freight and supply chains worldwide. 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. Mainfreight shareholders would be similarly pleased. Its an intimate touch with the P&L; the weeklies tell us lot. JUDGES COMMENTS Weve sort of tucked on the back of some trials in Europe and in the States where they were running in threes and fours behind each other, all connected by a computer. That means a lot of travel, but the reality is I thought my skills were best used in front of a customer so thats what I focused on. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. The company now expects to spend an additional $338m for property over the next two years, with $156m of that during the current financial year. Don Braid's Phone Number and Email Last Update. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 43 years' experience in freight forwarding and logistics both New Zealand and internationally. And if you dont make a profit, theres no bonus that year. So we are developing our people to be the best they possibly can be. Whats changed? Don: For us, its not about the short game, its about the long game. Although Plested remains the largest shareholder with a 16% stake worth $395m, Braid's more modest 2.79% stake is still worth about $70m - supplemented by annual remuneration of $2.2m in 2017. Thats the key. Prior to joining Air New Zealand, he held range of senior management positions both within New Zealand and overseas, including roles with the National Australia Bank, Bank of New Zealand, Telecom NZ and ITV Group in the UK. When other international airlines are finding their wings clipped, this straight talking, and well regarded leader, has proved his point. Its a huge level of success and theres satisfaction you get from that. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. Theres no cross subsidies. Not living as a question mark but instead getting on with it and making those decisions. Its having empathy and I think Im patient, determined, have belief and energy. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. Insurers support an immediate managed retreat for recent flood victims. Whilst describing the foundation of Mainfreight in 2000, Plested said to the New Zealand Herald, "We moved all our freight by sea between Auckland, and Christchurch and Dunedin, and we worked weekend shifts to make sure we loaded and unloaded the ship using the whole of the seven days - we found that was faster and more reliable than our big competitors."[4]. So each person can earn some more money by not just making profit, but keeping customers happy, keeping claims to a lower amount, making sure were collecting cash, making sure that were delivering freight in full and on time but the base bonus, everybody gets the same amount no matter whether youve been there for one year or for 40 years and no matter what your position is. Don Braid has been with freight and logistics company Mainfreight since 1994, after joining the firm as part of the acquisition of Daily Freightways (where he had been for 16 years). Zac: How do you prioritise where to spend your time in a normal week? Engage via Email. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. Your email address will not be published. So a lot is about the long game. "He implements things very well and you don't have to remind him about anything you're trying to achieve. We will probably go back to normal but be ready to adapt, be flexible and look after your people theyll bring the answers to the table for you on what your business will look like in the future. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. Shareholders would be glad to know that the company has improved itself over the last few years. Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. Well in Europe they had these time clocks. 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. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through.
Rent A Garage From Kirklees Council,
Riot Games Intern Portfolio,
Michael Rice Cyclist Japan Wife,
Articles D