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. Hes the right man for the job at just the right time. Mainfreight is a truly brilliant organization who sees all staff and their Franchises businesses as friends not employees. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. 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. Cash flow is essential for any business survival. His father was a truck driver, but he says that didn't influence his career decisions. Zac: Mainfreight is obviously a massive employer with almost 9000 staff across the world. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. 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. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". Mainfreight is the fourth largest company in NZ, doing over $3 billion in sales and over $300 million in EBITDA, with physical assets of $1.5 billion and debt of less than $200 million. He owns a 3 per cent stake in the firm, worth about $29 million. So all the bureaucracy that goes on is increasing the amount of time that well see some of those things arrive. Mainfreight's straight-talking group managing director has an infectious zest for business. 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. That was uppermost in our mind. 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. The company is growing EPS and total shareholder returns have been pleasing. 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. 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. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. This is vitally important for all business to remain financially viable and it is where more than often we see business failures and especially in the Building Construction Industries which I was involved in. 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. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. Early on, New Zealand had great lessons to take to the rest of our network. 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. How Does Don Braid's Compensation Compare With Similar Sized Companies? I guess whats annoying is that we have got to wait for an election year to get this kind of stuff. Don Braid's Phone Number and Email Last Update. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. So take a peek at this free list of interesting companies. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. Concerned about the content? Its great fun. Your email address will not be published. Shareholders would be glad to know that the company has improved itself over the last few years. 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. He is an outstandingly consistent and capable chief executive. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . I will definitely be following the Mainfreight progress closely for when I return to NZ. Zac: Don, what makes you good? Wed rather own assets than lease them. But, he said, the groups response at the outset of the pandemic had been unequivocal. I'm pleased I didn't do anything else.". Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. 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.". 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. "If you allow the recession to roll over the top of you there's a great chance it will.". He attributed the. We dont call them staff for us, they are our people or our team. 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. As a young salesperson aged 19, I couldnt make a cold call. A licence from New Zealand Railways Corporation was needed to carry freight over 150km. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. 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. 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. Zac: How do you prioritise where to spend your time in a normal week? By the way, its not just about us seeing those numbers. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. 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. 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". "I think we're a better business because of adverse economic conditions, there's no doubt about that," he says. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. And sometimes, particularly so in New Zealand, they see the market ultimately being as quite small, when in fact their product or service is good enough to take to the world. Learn more. He brings strong financial skills and business acumen to the role. Don: The culture is really important and our culture starts with those closest to the customer. 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. Where should we open next? 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. 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. Mainfreight's Don Braid rose above a solid field of finalists to be named New Zealand Herald Business Leader of Year. Subscribe to protect quality NZ journalism. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. Despite international growth and success, Braid is passionate about keeping the company proudly Kiwi-owned and has been an outspoken voice on local transport and infrastructure matters. 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. And thats that. If our team on the dock is seeing poor decision-making thats eroding profitability, they will suffer because they share that profit so there comes internal pressure just as much from them as there is from us, looking at how the business is progressing. Zac: Whats a bit of business advice you can share? 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 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. 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. Mainfreight shareholders would be similarly pleased. Required fields are marked *. 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. 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. 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). Click on [Agree] or [Disagree] to accept or refuse cookies. 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. Mainfreight chairman Bruce Plested says Braid is a very complete modern and old-fashioned leader wrapped up in one. Braid consistently delivers for shareholders and stakeholders alike. 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 Its the individuals responsibility to arrive on time and stay until the jobs finished. Where do we need to be? 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. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. And then it was a matter of communication and staying in touch, making sure everyone was okay, making sure any questions were answered. At Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. 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. The firm has earned a reputation within the market for being slickly-run. "I think I've always enjoyed business, from an early age, so to be involved like I am today has been great. 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. In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. See guidance for chairs and directors. [email protected]; Profile. So we are developing our people to be the best they possibly can be. The firm's shares have been one of the best performing stocks on the NZX, returning more than 20 per cent in the year to date. Contact. He points out that 172 million people live within a 350 km radius of Wim Bosman's headquarters in's-Heerenberg, on the Dutch-German border. People thrive on being given responsibility. Don Braid Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. "He implements things very well and you don't have to remind him about anything you're trying to achieve. | Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. I dont see this as a job, so therefore the stress levels arent as strong. I believe that I shouldnt ask my colleagues/work mates/ team to do any task I would not do myself or know how to do. [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. "It's not about what I've done - it's about what we've done and what the business has done," he says. Don: Well, the numbers never lie, right? 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. 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]. Zac: Can you share what some of the great ideas youve actually brought from overseas have been? "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. 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. 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, with businesses operating in over 214 branches throughout New Zealand, Australia, Europe, Asia and the United States. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. Don: For us, its not about the short game, its about the long game. The key for me is to be in the business as much as possible, to be visible. Were thinking about being around for a hundred years. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. Will be fundamentally different from the last one. Don Braid is a Group Managing Director at Mainfreight NZ based in Mangere, . FINALIST 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. Who wouldnt want exposure to the retirement sector? Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. Photo / Supplied . As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. Then we got some momentum and we saw some of the other regions doing better than what we thought so we felt better about it. In 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. 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. 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. Experts say community investment is the future. As you get bigger, staff engagement and culture becomes more difficult. 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. We've identified 1 warning sign for Mainfreight that investors should be aware of in a dynamic business environment. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. The government is pushing really hard for the major New Zealand companies to pay their suppliers on time, within 30 days. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. Of course, you might find a fantastic investment by looking at a different set of stocks. In this episode, Bronson explains how the lessons he learned in the kitchen translated to the booth, the reason money can never be the motivation for creating art, and why he believes that imperfections are the best part of any masterpiece. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. 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. Copyright 2023 Institute of Directors Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. "You need some energy and you need to be on the front foot," he says. 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. WINNER [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 feed off that and suppose the people in our business like seeing that and see it as an example and follow. 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. This endeavor launched the first permanent investment into South America. In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. But the excitement is justified. 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. So you need to make sure youve got succession planning to be able to work on the dream that youre creating. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. How do you measure this? He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. Don Braid. While many of its NZX-50 peers have entered a period of stagnation, Mainfreight - it seems - thrives on hard times. 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 natural protection for earnings. With the takeover of the Owens Group in 2003 they purchased Owens International Australia. 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. "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. Although Plested remains the largest shareholder with a 16% stake worth $395m, Braids more modest 2.79% stake is still worth about $70m supplemented by annual remuneration of $2.2m in 2017. 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? 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. Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. FINALIST Its about the other employees seeing the numbers; dont forget, we share those profits with our people too so theres internal pressure to perform too. [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. What else do we need to do to satisfy that bunch of customers? We aim to bring you long-term focused analysis driven by fundamental data. Look after your people and theyll look after the business. Don from Mainfreight talks to Fisher Funds. Weve got examples of that in our business right now. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. Well in Europe they had these time clocks. Zac: Don, having a decentralized business, whats been your approach to leadership? 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. Braid has earned a reputation within the market as a straight talker and one of the most effective NZX-50 bosses. Likewise, his strongly-held beliefs relating to the importance of education and of recycling/ sustainability, continue to positively shape the Companys behaviours. That's ambitious, even . So we have these 282 locations across 20 countries how do we get them each operating at their peak, every day? I think with a driverless truck, well lose that ability of interaction with the customer on pickup or on delivery. Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. 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. 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. Weekly operational reports are posted on the wall of the company cafeteria in Otahuhu, where all team members, including Braid, eat at a single, long table. Some of the leading players in the listed retirement sector have been raising capital. Mainfreight chief executive Don Braid says New Zealand needs to slash the number of its container ports to a 'maximum' of three to avoid being side-lined by major shippers.The 18-year veteran CEO of the NZX-listed multinational logistics company told a supply chain forum in Auckland on Wednesday that container cranes sitting at most of the What are their requirements? And then its about exploring the long game. Don: Its been interesting! 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. 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. And he should know, having spent his entire working life in the freight industry. Zac: Aside from being in front of customers, what else do you spend your weeks focusing on as the global CEO of Mainfreight? He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground.
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