Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. Mainfreight - Wikipedia Zac: Im keen to understand what do you think are common reasons why many businesses fail to reach their maximum potential? Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. I dont see this as a job, so therefore the stress levels arent as strong. You need to have been there 12 months to earn the full bonus that everybody else gets. Don: Im not sure its stress. [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. 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. I think our owner drivers are a key component of the relationship with the customer. Zac: Can you share what some of the great ideas youve actually brought from overseas have been? Ideal traits we want to see in leaders are integrity, being trustworthy and capable of bottom up decision-making, not top down. Email. Both are real legends and seem to really walk the talk. The company also noted Brexit issues between the UK and Europe remained a cause of frustration, particularly since January, resulting in considerable delays to freight on the back of more complicated customs formalities. 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. Early in my career I understood that I enjoyed the interaction with customers and in fact I enjoy the challenge of helping win new customers. But, he said the first seven weeks of trading in the current year has been at similar levels to the past six months. So the weekly P&L puts them on the spot. Will be fundamentally different from the last one. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. Zac: Don, if you owned your own SME business at the moment, what would you be focusing on going forward to be as successful as you could be under this environment? Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. 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. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. Don from Mainfreight talks to Fisher Funds. "He's sporting and tough and makes decisions quite fast," Plested says. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. 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. Photo / Supplied . 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. 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. 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. 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. 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. PO Box 65092, Mairangi Bay, Auckland, New Zealand, Top 200 : Deloitte/Management magazine Executive of the Year Don Braid Clear Vision. WINNER I just have a belief and determination that weve got a pretty good business here. 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. Theyre all networked, but theyre all distanced so we knew we needed to communicate really well with them and have a blueprint that we know would work. People thrive on being given responsibility. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. [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. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. Everyone stands on their own two feet. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. Braid has earned a reputation within the market as a straight talker and one of the most effective NZX-50 bosses. For me its being in the business, with people and in particular with customers. He attributed the. Wed rather own assets than lease them. Zac: As the leader of Mainfreight, what do you personally focus on to get the team going in the right direction? 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. Zac: Lets talk more about those weekly P&Ls. Its great fun. The company is growing EPS and total shareholder returns have been pleasing. And thats that. CEO compensation can have a massive impact on performance, but it's just one element. 'Ready, fire, aim' is Mainfreight man's mantra | Stuff.co.nz "He never moans about the currency and is always positive.". 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). So it looks like Mainfreight compensates Don Braid in line with the median for the industry. Don Braid. How do I gain more customers? Zac: Can you share more about your profit share? We aim to bring you long-term focused analysis driven by fundamental data. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. 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. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. Mainfreight half year net profit lifts 79 per cent despite supply chain 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. 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. At the end of the day, the decisions they made will be seen in the weekly results. In 2008, the United States locations were re-branded as Mainfreight USA. Don: I think empathy is really important. Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. Learn more. Group Managing Director at Mainfreight NZ . Its the individuals responsibility to arrive on time and stay until the jobs finished. What we put in place here in New Zealand became the blueprint for the organization around the world. Don Braid - newzealandinc.com 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. 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. But, he said, the groups response at the outset of the pandemic had been unequivocal. Check out our latest analysis for Mainfreight. 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. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. Top 200 : Deloitte/Management magazine Executive of the Year Don Braid Where should we open next? Director Profiles - Mainfreight Mainfreight's straight-talking group managing director has an infectious zest for business. FINALIST 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. I will definitely be following the Mainfreight progress closely for when I return to NZ. We use functional and analytical cookies on our website to offer an optimal user experience. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. On the Money: Tim Boyd he's back; James Lee he's leaving, and more New drugs could end the worlds obesity epidemic, Big plus for NZ schools and govt agencies, Growing wealth through our cities growth, Insurers call on government to seize the day, Smoke, mirrors and delay Nationals three waters policy, Former CentrePort CEO Liz Ward joins KiwiRail board. Mainfreight boss bypasses 'profiteering' global shipping lines - Newsroom document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. Founded in 1969 as Dunedin Customs Brokers Ltd, DCB International provides international air and sea freight services from Dunedin. Don: Well, the numbers never lie, right? 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. Whats changed? 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. They couldnt believe we trusted them to turn up when we needed them to turn up and leave when we needed them to leave. 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. Insurers support an immediate managed retreat for recent flood victims. Im always exploring those opportunities and may be experimenting in particular regions or with particular customers before implementing that across the rest of the business. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. Look after our people, look after our customers, guard our cash, and embrace the opportunities that may arise.. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. 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. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. 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. 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. 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. This article by Simply Wall St is general in nature. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. 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. 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. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . 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Target operate domestic and international time-sensitive freight-forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services. Chosen from New Zealand's top companies, this year's Deloitte . Hes the right man for the job at just the right time. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. [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 Group MD & Director of Mainfreight Limited (NZSE:MFT), Donald Braid Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. Media enquiries Mainfreight managing director Don Braid, left, and founder and chairman Bruce Plested who says businesses should share profits with workers. Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. By using this website you consent to the use of cookies in accordance with our privacy policy. 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. DCB had a staff base of five employees on the date of acquisition, however, staff was expected to rise to seven employees. 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. 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. So it looks like Mainfreight compensates Don Braid in line with the median for the industry. 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. 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]. Mainfreight Half Year Financial Results 30 September 2021 - NZX He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. Target has offices in 35 cities throughout the United States and an international network of agents in over 70 countries.[15]. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. What more could I be doing in the business to actually grow my revenues in these difficult times? So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? Don: Um, I think its recognising good people. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. A licence from New Zealand Railways Corporation was needed to carry freight over 150km. I think weve done 17 to date since Covid and weve got another six or eight for the next two weeks just for New Zealand and theyve adapted. Read More . I think its about ready-fire-aim: making sure were steady, allowing decisions to be made, and shaking them up as we get on. As Chairman and Founder, Bruce shares his vision for the Company with the Mainfreight team, bringing a particular focus to quality and our culture. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future. By the way, its not just about us seeing those 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. 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. 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. Experts say community investment is the future. Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. I learned that early in the piece and I think its stood me in good stead. "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.". What havent we got right? So Don, my first question is whats been your main focus the past two months during Covid times and leading Mainfreight and global business? Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. Were thinking about being around for a hundred years. Don: The culture is really important and our culture starts with those closest to the customer. Watson said she did not believe bonuses were a way. 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: Whats a bit of business advice you can share? You can follow him on Twitter, New tourism plan sidesteps immigration elephant, Mortgage arrears up as rates start to bite, Investors queue up ahead of Du Val liquidity events, Affordable housing levy sparks fear and loathing in Queenstown. So it doesnt matter whether youre loading freight, taking customer service calls, out making sales calls, or an operations transport manager, you understand those disciplines early on in the piece. Zac: Don, your 100-year vision how does that work? And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. 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. Director Profiles | New Zealand - Mainfreight Group Managing Director, Mainfreight. Required fields are marked *. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . [4] This operation was expanded with depots in Melbourne and Brisbane. Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. 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. So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? Don: The recruitment of our people sits with the branch managers. 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. 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. The key for me is to be in the business as much as possible, to be visible. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. Other Current Directorships: Member of the CFO Advisory Board, Auckland University Business School, Member of the Board of Trustees of Dress for Success Incorporated, and private family companies. And if you dont make a profit, theres no bonus that year. That was uppermost in our mind. 5 November 2019 - Mainfreight's Don Braid has reinforced his reputation as one of New Zealand's most successful executives, being named Executive of the Decade at the 2019 Deloitte Top 200 Awards in Auckland tonight (5 December 2019).Mainfreight was also named Company of the Year, sponsored by Deloitte Digital and Marsh. 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. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. Theres no bullshit in the numbers, they are what the business has earned. At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. "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.