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 2008, the United States locations were re-branded as Mainfreight USA. He owns a 3 per cent stake in the firm, worth about $29 million. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. Zac: Don, what makes you good? As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. | In light of current trends, we will provide a nine-month trading update mid-February 2022. Once we convinced them that they didnt need a time clock, they took to them with a sledgehammer. 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. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. 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. "You need some energy and you need to be on the front foot," he says. Rob Fyfe But, he said, the groups response at the outset of the pandemic had been unequivocal. [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. Required fields are marked *. Its the individuals responsibility to arrive on time and stay until the jobs finished. "There's no bureaucracy or hierarchy or superiority in the business. Concerned about the content? While many companies have been battening down the hatches this year, Mainfreight has been on the acquisition trail - purchasing a Netherlands-based freight business which operates in Belgium, France, Romania and Poland and Russia. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. Get in touch with us directly. And if you surround yourself with really good people, the stress is actually spread across everybody and you dont wear it all on your own shoulders. I feed off that and suppose the people in our business like seeing that and see it as an example and follow. Were not thinking about selling our shares, were not thinking of getting out when the goings good were here for the good and the bad so were preparing the business for that next 100 years. Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. Don Braid. The relationships we develop, both with suppliers and with customers, are there for the long term. Appointment to Board 2000 - With Mainfreight since 1994. 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. "If you allow the recession to roll over the top of you there's a great chance it will.". Mainfreight managing director Don Braid. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. 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. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. Media enquiries Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. Click on [Agree] or [Disagree] to accept or refuse cookies. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. Not bad for a Kiwi trucking 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. | By becoming a supporter, you'll be helping us expand our independent journalism for the business community. Watson said she did not believe bonuses were a way. See guidance for chairs and directors. And what do you believe leaders need to excel at? Our subscriptions start at $24 / month for individuals. Will be fundamentally different from the last one. Between 1994 and 1997 Mainfreight started acquiring former competitors, such as, Daily Freightways and Chem Couriers in 1994, a 75% shareholding in Lep New Zealand in 1996, and Combined Haulage and Senco Haulage in 1997. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. Chief executive, Mainfreight "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. Don Braid. You know, people arrive when they arrive and they leave when they leave. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. How Does Don Braid's Compensation Compare With Similar Sized Companies? 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. [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. Theyll have the Mainfreight culture, but itll have a little twist for example, the culture in Shanghai is different to the culture in Newark or the Netherlands or Sydney. 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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. How do you measure this? Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. It doesnt matter what the worlds thrown at them, theyve shown they are capable of dealing with it. The government is pushing really hard for the major New Zealand companies to pay their suppliers on time, within 30 days. The Asian business saw profits more than double to US$7m, driven by increases in market share and rate increases from both air and see freight, the firm said. As a young salesperson aged 19, I couldnt make a cold call. 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. Private parking spaces are also banned at Mainfreight - the group managing director has to find himself a spot in the carpark each morning after he drives through the front gate. How does that actually work, practically? document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. An unabashed promoter of New Zealand success, he has an extensive background in the banking industry in New Zealand and Australia, with senior management experience in marketing, strategic planning, retail services and business development. Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9.3% of the pie. Wishing you the best in England and when you return to NZ. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. We aim to bring you long-term focused analysis driven by fundamental data. 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. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. His company has been a shining example of success amid tough global economic conditions. Mainfreights newest regions, Asia, Europe and The Americas (spanning from Canada to South America), are expected to grow exponentially as the world trade shifts towards other developing countries. I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. Zac: Can you share more about your profit share? Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. I'm pleased I didn't do anything else.". Who wouldnt want exposure to the retirement sector? Rapper, chef and author Action Bronson takes us on a journey from his early days at culinary school, to releasing critically acclaimed albums, to writing books, starring in TV shows and building an iconic brand around his favorite interests. Its a huge level of success and theres satisfaction you get from that. 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. Don Braid (Mainfreight) Credit: Mainfreight . Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. I think our owner drivers are a key component of the relationship with the customer. Richard Prebble is by profession a lawyer. 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. Brent is a senior reporter based in Queenstown. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. Should it change? Leading reputation management consultant Noke Kiroyan says it is perfectly possible although not always easy to run a business in Indonesia without resorting to corrupt behaviour. Its revenue is up 5.9% over the last year. So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. People thrive on being given responsibility. Cash flow is essential for any business survival. A licence from New Zealand Railways Corporation was needed to carry freight over 150km. On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. Zac: Whats a bit of business advice you can share? Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. National's three waters policy is only cosmetically distinct from Labour's. 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. 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. 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. [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. "That gives us an enormous amount of opportunity.". 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 NewZealand and internationally. JUDGES COMMENTS don@mainfreight.com; Profile. The Biosecurity Business Pledge group has launched two new biosecurity guides. We dont call them staff for us, they are our people or our team. 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. Nothing drives home the state of our roads like a trip on a bike. How do I gain more customers? 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. You need to have been there 12 months to earn the full bonus that everybody else gets. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. Don: Well, the numbers never lie, right? You cant see yourself as an employer of 8500 people. 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. FINALIST [10] In August 2013, Mainfreight and the family of Wim Bosman reached an out of court agreement for compensation to the tune of 8.2 million or $14 million. Other Current Directorships: 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]. 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. In May 2011, Mainfreight established a CaroTrans branch in Santiago, Chile. 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 Our data indicates that Mainfreight Limited has a market capitalization of NZ$6.0b, and total annual CEO compensation was reported as NZ$3.0m for the year to March 2020. Whats changed? Don has over 40 years experience in the freight industry, including 26 with Mainfreight. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. 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. 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. Email. Where do we need to be? 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]. 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. I just have a belief and determination that weve got a pretty good business here. Engage via Email. Do also serves as a member of the Board of the Starship foundation. His intellect and pragmatic approach is highly regarded at the Board table. The key for me is to be in the business as much as possible, to be visible. "He never talks about himself and always talks about long-term goals," Hunt says. Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. | This article by Simply Wall St is general in nature. Offices are outlawed, even for Braid, whose desk is situated in the corner of a large, open-plan room occupied by the company's national team. Appointment to Board 2000 - With Mainfreight since 1994. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Of course, you might find a fantastic investment by looking at a different set of stocks. They love this as it makes them feel supported and that I understand their role. Our data indicates that Mainfreight Limited is worth NZ$4.0b, and total annual CEO compensation was reported as. [13] The transaction was completed on 6 June 2007. Don from Mainfreight talks to Fisher Funds. He has issued a New research confirms the importance that NZ business leaders place on reputation, but reveals that many companies need to increase their investment in building and protecting it. Early on, New Zealand had great lessons to take to the rest of our network. "It's just a little rule that we've had because if they [analysts] keep calling us a trucking company they clearly haven't done their research.". 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. Chief executive, Kiwibank 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. Both are real legends and seem to really walk the talk. Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. That's just a smallish increase of 6.9% on last year. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . Theres no bullshit in the numbers, they are what the business has earned. 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. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. Zac: Don, having a decentralized business, whats been your approach to leadership? Another attribute is straight talking. And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. I dont believe that. 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. 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. Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. Group managing director Don Braid said it was a significant result for the Mainfreight family, achieved during a tumultuous time in the worlds history and with success in every one of the five regions the company operated. Im not sure well see driverless trucks in NZ for some time to come. Filed Under: Blog, Business coaching, Motivation coming at ya, What a great interview and there are many excellent points which the Mainfreight CEO covered like Empathy which is essential when supporting all those involved in Mainfreights success and another dealt with the importance of making sure all invoices are paid on time. "He never moans about the currency and is always positive.". Copyright 2023 Institute of Directors They know that now and can alter those decisions as they head into the week in front of them. Indonesia ups trade potential with focus on corporate governance, NZ business needs to invest more in reputation, NZ corporates taking a lead in health & safety. And thats why we travel a lot when you visit, you can smell the morale in an instant. 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. I will definitely be following the Mainfreight progress closely for when I return to NZ. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. Simon has a long association with Mainfreight having served as the Companys main adviser for acquisitions, debt structure and other matters since 2003 (through Grant Samuel & Associates), prior to joining the Mainfreight Board. 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. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. Alternatively, email editorial-team@simplywallst.com. He has an enviable track record of integrity and professionalism and wide ranging business experience. The firm's shares have been one of the best performing stocks on the NZX, returning more than. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. [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. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. Braid says the Mainfreight culture and passion took hold pretty quickly, and Plested recognised his leadership strengths by appointing him to the board six years later. In April 2007, Mainfreight announced its intentions to sell its Pan Orient Project Logistics business and its 75% interest in Lep Australia and New Zealand to global logistics company Agility Group for A$83 million. 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. Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. 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. He attributed the. Then we just sat back and allowed the de-centralized process to take over and allowed people to take responsibility to get their businesses sorted and in line. 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. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. Those people become good leaders early in the piece they might be only leading a couple of people by the time they make branch manager status but they understand the roles of leadership within Mainfreight. 11/5/2022 3:33 PM. I could not get out of the car and go and meet a stranger to ask for the business and now I actually prefer to do that! Don: I think empathy is really important. Aside from travel (usually), customers, and communicating with those in other countries I spend my time in front of our people and our leadership team, no matter where they are located. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. That was uppermost in our mind. Well in Europe they had these time clocks. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. Don: The recruitment of our people sits with the branch managers. Boards have a key role to play in the wake of any crisis.
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