We tackle critical leadership, management and economic issues as well as profiling successful local and global leaders. You can be profitable and not collect the cash and go broke. See the full transcript below. Both are real legends and seem to really walk the talk. 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. [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. How does that actually work, practically? This information will be used to measure the effectiveness of our advertising from various channels and to offer you personalised ads. Don: Well, the numbers never lie, right? Hamish. Don Braid (Mainfreight) Credit: Mainfreight . Agreement with print tech giant Canon saves college thousands. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. Its great fun. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. Us taking away that clock was about responsibility and about taking away that control from head office. 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 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. [13] The transaction was completed on 6 June 2007. [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. And I suppose the key thing that we had in our mind was how are we going to run this business to survive and not make anybody redundant. Richard Prebble is by profession a lawyer. Don: I think empathy is really important. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. Zac: Whats a bit of business advice you can share? Bryan has a wealth of experience, both in executive and board roles. 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. 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. Our subscriptions start at $24 / month for individuals. Everyone stands on their own two feet. Don: With this decentralized approach, those P&Ls were talking about, theyre part of everyday life at Mainfreight those P&Ls go up on the cafeteria wall. 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. COVID-19 has had a significant impact on freight and supply chains worldwide. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. Im not sure well see driverless trucks in NZ for some time to come. Those are the real world indicators of whether youve got morale correct or not or whether youve got some issues going on you need to address. 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. Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. 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 interesting when you go into a pandemic or an event like this is what the balance sheet looks like. Zac: How do you prioritise where to spend your time in a normal week? Don Braid. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Zac: Mainfreight was started back in the late seventies by Bruce Plested, who is the chairman now. [3] [4] When the company was founded it entered a highly regulated transport market. Mainfreight shareholders would be similarly pleased. Don Braid's Phone Number and Email Last Update. Today he chairs a group of telecommunication companies. 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. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. "I don't think any of those things are really of interest to this," he says. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. 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. Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. 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. [3][4], When the company was founded it entered a highly regulated transport market. 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. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. 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. The firm's shares have been one of the best performing stocks on the NZX, returning more than. Zac: What are your thoughts on driverless trucks and how they will affect Mainfreight? 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". We note that the salary portion, which stands at NZ$2.20m constitutes the majority of total compensation received by the CEO. The company is growing EPS and total shareholder returns have been pleasing. 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. A licence from New Zealand Railways Corporation was needed to carry freight over 150km. "Don gave this glowing account of [Daily Freightways] and I kept looking at him and thinking 'what a lot of bullshit'," Plested says. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company. We aim to bring you long-term focused analysis driven by fundamental data. Don: We do weekly reporting on a Monday so you always understand how well youve gone across the business and across the network. Braid has earned a reputation within the market as a straight talker and one of the most effective NZX-50 bosses. Learn more. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. How do you measure this? It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. Don Braid is a Group Managing Director at Mainfreight NZ based in Mangere, . He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. Photo / Supplied . What we put in place here in New Zealand became the blueprint for the organization around the world. Its having empathy and I think Im patient, determined, have belief and energy. Other Current Significant Directorships and Trusteeships: BUPA ANZ Pty Limited (Chairman), Adherium Limited, Clearspan Limited, Thinxtra Australia, Starship Foundation, Massey University Foundation. Well in Europe they had these time clocks. Zac: What is the Mainfreight way when it comes to culture? Managing director Don Braid said Covid-19 fully tested Mainfreight's resilience, but it also necessitated some fundamental commitments. In 2003 Mainfreight bought Owens Group, one of New Zealand's largest trucking firms. As Group Managing Director of Mainfreight Limited - one of New Zealands largest freight companies - Don Braid joins us to share key insights for directors into the changing patterns of these chains and what the future may hold. 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. I just have a belief and determination that weve got a pretty good business here. PO Box 65092, Mairangi Bay, Auckland, New Zealand, Top 200 : Deloitte/Management magazine Executive of the Year Don Braid Clear Vision. What else do we need to do to satisfy that bunch of customers? The Biosecurity Business Pledge group has launched two new biosecurity guides. 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. 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. Previously, Don was a Political Columnist at Calgary Herald. So weve got eight and a half thousand people and 282 locations. As Chairman and Founder, Bruce shares his vision for the Company with the Mainfreight team, bringing a particular focus to quality and our culture. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. 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. [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. He is fiercely proud of the Mainfreight culture seeing this as a key reason customers choose Mainfreight over the competition. 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. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. Thats the best way of being able to manage an event like were in right now, but Id say its the best way to run a business at all times.We have some really good systems. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. It has largely grown earnings and revenue since 2008 and tripled its share price between early 2009 and today. enter your email and well send you details. He is an outstandingly consistent and capable chief executive. 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. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. The key for me is to be in the business as much as possible, to be visible. "We've been in China for 20 years. Share Your Design Ideas, New JerseysMurphy Defends $10 Billion Rainy Day Fund as States Economy Slows, What Led to Europes Deadliest Train Crash in a Decade, This Week in Crypto: Ukraine War, Marathon Digital, FTX. 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. 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. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . We dont call them staff for us, they are our people or our team. Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. It only represents a small part of our revenue, but . 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. "I just think that's disgusting," he says. 11/5/2022 3:33 PM. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. Thats the key. I will definitely be following the Mainfreight progress closely for when I return to NZ. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. I suppose were grooming people all the time for those loaded leadership roles. What are their requirements? And thats why we travel a lot when you visit, you can smell the morale in an instant. The company posted record earnings and revenue for its last full year and has continued to break records this financial year. "He never talks about himself and always talks about long-term goals," Hunt says. 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. 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. Its an intimate touch with the P&L; the weeklies tell us lot. Of course, you might find a fantastic investment by looking at a different set of stocks. Hi Tanya. "There's no bureaucracy or hierarchy or superiority in the business. 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. "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. Don from Mainfreight talks to Fisher Funds. While the group had deferred capital expenditure during early 2020, it had recommenced land and building projects during the year, with net capex totalling $118.6m, of which land and buildings accounted for $58.9m, plant and equipment $26m, fit out costs of $15.6m and information technology another $18m. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. Weve needed to adjust, particularly in the international sector, air freight charters rather than just normal air freight our people had never had any experience in chartering a full plane. Early on, New Zealand had great lessons to take to the rest of our network. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". "He implements things very well and you don't have to remind him about anything you're trying to achieve. Out of that, I think weve got the culture really starting to develop. I give them the ability and the responsibility to deliver, and I give them great support and lots of guidance. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. 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). So the weekly P&L puts them on the spot. d***@mainfreight.com. [4] This operation was expanded with depots in Melbourne and Brisbane. Zac: Don, having a decentralized business, whats been your approach to leadership? 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. Concerned about the content? Target operate domestic and international time-sensitive freight-forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. Don: Its been interesting! Do also serves as a member of the Board of the Starship foundation. We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. While many of its NZX-50 peers have entered a period of stagnation, Mainfreight - it seems - thrives on hard times. Boasting a total shareholder return of 168% over three years, Mainfreight Limited has done well by shareholders. Media enquiries Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. don@mainfreight.com; Profile. Mainfreight managing director Don Braid. [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. And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. 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. I guess whats annoying is that we have got to wait for an election year to get this kind of stuff. When other international airlines are finding their wings clipped, this straight talking, and well regarded leader, has proved his point. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? Since the acquisition of the Wim Bosman Group the eurozone has spiralled to the brink of economic disaster, but 52-year-old Braid says doing business on the debt-ravaged continent is nothing other than an "exciting" prospect. Check out our latest analysis for Mainfreight. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. Plested says that within a few months of the firm's acquisition of Daily Freightways, which became Daily Freight under Mainfreight ownership, he came to recognise Braid's strengths. The company is on track to go close to the $2 billion mark in its current financial year, Braid says, having already posted an almost $900 million revenue for the six months to September.

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