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. In 2008, the United States locations were re-branded as Mainfreight USA. WINNER Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. He's got plenty of charm if he wants to have it and his leadership skills just stand out - people want to stand next to him.". Youve got to think about that as small groups of people looking after our customers and each group is important in their own right and theyll have their own little traits. Zac: Can you share more about your profit share? Look after your people and theyll look after the business. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. 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. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. This endeavor launched the first permanent investment into South America. He has an enviable track record of integrity and professionalism and wide ranging business experience. George Adams, the departing MD, of Coca-Cola Amatil, won the Leader of the Year award at this weeks NZ Workplace Health & Safety Awards 2013. Zac: Whats a bit of business advice you can share? So what you produce in terms of profitability is real. 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. d***@mainfreight.com. The firm's shares have been one of the best performing stocks on the NZX, returning more than. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. 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. I dont believe that. Youve got to break it down. Zac: Can you share what some of the great ideas youve actually brought from overseas have been? [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. 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. 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. So a lot is about the long game. 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. 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. We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. 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. Don: It should be where your skills are. Mainfreight managing director Don Braid. Bruce Plested, the firm's executive chairman who founded the company in 1978 with $7200 and a 1969 Bedford truck, recalls the day in 1994 when Braid - then a Freightways Group employee - had the job of pitching its Daily Freightways business to Mainfreight, which it acquired that year. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. 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. Nothing drives home the state of our roads like a trip on a bike. How do I gain more customers? Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. JUDGES COMMENTS Brent is a senior reporter based in Queenstown. Not living as a question mark but instead getting on with it and making those decisions. [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. You can be profitable and not collect the cash and go broke. Chief executive, Air New Zealand It is totally how I believe a company should be and I love how everyone starts at the bottom. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. 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. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. 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. At the end of the day, the decisions they made will be seen in the weekly results. 11/5/2022 3:33 PM. The relationships we develop, both with suppliers and with customers, are there for the long term. Another attribute is straight talking. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. Alternatively, email editorial-team@simplywallst.com. 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). 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. So the weekly P&L puts them on the spot. 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. 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. 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. He is an outstandingly consistent and capable chief executive. When it comes to capable, motivational and effective leadership Sam Knowles delivers with interest. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. FINALIST 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. On examining similar-sized companies in the industry with market capitalizations between NZ$2.9b and NZ$9.4b, we discovered that the median CEO total compensation of that group was NZ$3.7m. 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. 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. Zac: Don, what makes you good? 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. 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. Its the individuals responsibility to arrive on time and stay until the jobs finished. We would meet with them once a week and theyd share what theyd discovered and what they hadnt discovered and wed give them some guidance but then get out of their way and let them get on with the job. Braid said that while Mainfreights people can be proud of the way they stood up to be counted, there would continue to be uncertainty with heavily congested supply chains continuing to affect the worlds freight lanes. Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. "I probably wasn't qualified enough to go to university," Braid says. We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. Its Mainfreights style to offer career progression, giving people here a long-term career in the business, allowing them to find that space to develop the leadership traits. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . Its great fun. "If you allow the recession to roll over the top of you there's a great chance it will.". 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. And if you dont make a profit, theres no bonus that year. 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. His first job after leaving school was as a clerk with the Shipping Corporation before he moved on to Sea Freightways and then Daily Freightways, which was sold to Mainfreight in 1994. By the way, its not just about us seeing those numbers. Your email address will not be published. The company posted record earnings and revenue for its last full year and has continued to break records this financial year. That's ambitious, even . The Australian business reported a 46.6% jump in profit before tax to A$71.5m for the year, on the back of regional expansion of the groups transport business. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. [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. This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. Its revenue is up 5.9% over the last year. Media enquiries [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. Investors who take an interest in Mainfreight Limited ( NZSE:MFT) should definitely note that the Group MD & Director, Donald Braid, recently paid NZ$74.61 per share to buy NZ$500k worth of. If you trust your people, look after them and give them responsibility, theyll deliver. Our subscriptions start at $24 / month for individuals. They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. To trust your people too, to give them the responsibility. But the excitement is justified. [7] This takeover was in response to the purchase of Tranz Rail by Australian transport firm Toll Holdings. 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! "He never talks about himself and always talks about long-term goals," Hunt says. Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. Forsyth Barr analyst Rob Mercer said the market had confidence in Mainfreight after it managed to grow revenue and market share and outperform its peers during the global financial crisis. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. [3][4], When the company was founded it entered a highly regulated transport market. Im not sure well see driverless trucks in NZ for some time to come. 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). Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. So we are developing our people to be the best they possibly can be. | 2023: A year of trepidation unless you take control, Talking to 2022 Westpac Supreme Business Winner, Juliette Hogan, How Fix & Fogg are winning the hearts of Americans. 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. So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? 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. And thats that. He knows where the company is going and, more importantly, how it will get there. If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. In the decade Braid has spent at its helm, the company has become a global logistics player with operations on every populated continent apart from Africa. Don: I think its quite a long way off. Mainfreight's straight-talking group managing director has an infectious zest for business. 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. 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. 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. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Don: The culture is really important and our culture starts with those closest to the customer. We're trying to break all that down.". 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 So I think cashflow is king and Id be focused on that. 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. Once it became a global pandemic we needed to react and adapt as quickly as we could. Hamish. FINALIST Save my name, email, and website in this browser for the next time I comment. Required fields are marked *. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. In 2003 Mainfreight bought Owens Group, one of New Zealand's largest trucking firms. Where should we open next? Will His AI Plans Be Any Different? On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. How Does Don Braid's Compensation Compare With Similar Sized Companies? I think with a driverless truck, well lose that ability of interaction with the customer on pickup or on delivery. The company is growing EPS and total shareholder returns have been pleasing. Don: The recruitment of our people sits with the branch managers. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. Don: Theres been lots of things actually, like electric forklifts, the use of solar power Heres a good example: in New Zealand weve never had time clocks. Brent had an extensive career in corporate communications and strategic consulting, including for a range of public listed companies. 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. "It's not about what I've done - it's about what we've done and what the business has done," he says. See the full transcript below. 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. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . As an example, we know what money weve made or lost last week in every single one of those 282 branches as of about half an hour ago. 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. To join your company account for BusinessDesk and enjoy full access, COVID-19 has had a significant impact on freight and supply chains worldwide. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. 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. The price of the rights fell as low as 7.5 cents on the last day of trading. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. "He implements things very well and you don't have to remind him about anything you're trying to achieve. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. 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]. 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. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? As a Government Minister, Richard was responsible for creating SOEs, deregulating telecommunications and broadcasting, reforming ports, airports, railways and aviation. And he should know, having spent his entire working life in the freight industry. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. I feed off that and suppose the people in our business like seeing that and see it as an example and follow. Privacy policy 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.