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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. Nothing drives home the state of our roads like a trip on a bike. 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. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. Im not sure well see driverless trucks in NZ for some time to come. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. What are the things you do that maybe others dont do that actually make you lead this organization? 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. 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. Save my name, email, and website in this browser for the next time I comment. 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. 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. What are their requirements? 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 from Mainfreight talks to Fisher Funds. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. 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. 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. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. Component 2020 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. 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. 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. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. 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. 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. He owns a 3 per cent stake in the firm, worth about $29 million. 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). It now has 22 company depots in Australia and relies on agents and third parties in the Northern Territory, Tasmania and some of regional Australia. Zac: Can you share more about your profit share? Learn more. I feed off that and suppose the people in our business like seeing that and see it as an example and follow. Private parking spaces are also banned at Mainfreight - the group managing director has to find himself a spot in the carpark each morning after he drives through the front gate. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. Check out our latest analysis for Mainfreight. 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. 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. I will definitely be following the Mainfreight progress closely for when I return to NZ. His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. So everything that we do is about being here for a long time. His father was a truck driver, but he says that didn't influence his career decisions. Our data indicates that Mainfreight Limited has a market capitalization of NZ$6.0b, and total annual CEO compensation was reported as NZ$3.0m for the year to March 2020. 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. Well known for his mental and physical toughness, Braid is often seen working out at The Atrium Club in downtown Auckland, which offers real world fitness for men. His sartorial style was also recognised in 2006 when he was judged the national winner of the NBR Working Style Best Dressed Businessman Awards. 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. Regrettably, registration fees cannot be refunded when cancellations are received within two working days prior to any branch event. 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). 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. Aside from travel (usually), customers, and communicating with those in other countries I spend my time in front of our people and our leadership team, no matter where they are located. Not living as a question mark but instead getting on with it and making those decisions. 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. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. Mainfreight Limited has seen its earnings per share (EPS) increase by 19% a year over the past three years. Don: The culture is really important and our culture starts with those closest to the customer. That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. Were thinking about being around for a hundred years. National's three waters policy is only cosmetically distinct from Labour's. Where do we need to be? What we put in place here in New Zealand became the blueprint for the organization around the world. Rising inflation and labour shortages have added to the Covid-19 melting pot, crippling global supply chains and trade growth. If you'd invested $20,000 in Mainfreight 20 years ago and reinvested your dividends, your investment would now be worth $1.3 million. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. 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. Biography 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.. 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? [13] The transaction was completed on 6 June 2007. COVID-19 has had a significant impact on freight and supply chains worldwide. FINALIST Zac: As the leader of Mainfreight, what do you personally focus on to get the team going in the right direction? Should it change? 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. BusinessDesk has a paywall for most of its content. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". So what you produce in terms of profitability is real. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. Though his father was a truck driver, Timaru-born Braid can't recall being influenced by this. Mainfreight's straight-talking group managing director has an infectious zest for business. I might get a little bit wound up about stuff, a bit passionate about things, but I think you cant get so involved that you think about nothing else. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. Your email address will not be published. As Chairman and Founder, Bruce shares his vision for the Company with the Mainfreight team, bringing a particular focus to quality and our culture. 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. Richard Prebble is by profession a lawyer. 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. 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. The company posted record earnings and revenue for its last full year and has continued to break records this financial year. Chief executive, Mainfreight Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. Don: I think its quite a long way off. 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. Youve got to have good outlets. 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. Zac: Whats a bit of business advice you can share? Another attribute is straight talking. 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. He likes to surround himself with clever, energetic people who are equally as dedicated as him to meeting and exceeding the needs of Mainfreights customers. Mainfreight managing director Don Braid. In his results commentary, Braid said the results were pleasing in light of initial supply chain disruptions during the early part of the year, on the back of lockdowns in response to the global pandemic. In 2008, the United States locations were re-branded as Mainfreight USA. Don: For us, its not about the short game, its about the long game. "I probably wasn't qualified enough to go to university," Braid says. 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. Weve made this article available for free. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. He is fiercely proud of the Mainfreight culture seeing this as a key reason customers choose Mainfreight over the competition. Don Braid's Phone Number and Email Last Update. We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. Mainfreight Limited is a New Zealand logistics and transport company headquartered in Auckland. Read More . They love this as it makes them feel supported and that I understand their role. Its a huge level of success and theres satisfaction you get from that. Don Braid is a Group Managing Director at Mainfreight NZ based in Mangere, . Hamish. 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. We're trying to break all that down.". 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. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. How are we changing the business accordingly? 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. Zac: Don, your 100-year vision how does that work? 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. Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. At the end of the day, the decisions they made will be seen in the weekly results. So the weekly P&L puts them on the spot. 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. 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. 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. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. He is an outstandingly consistent and capable chief executive. Don: Um, I think its recognising good people. 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. 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. Group Managing Director at Mainfreight NZ . 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. [3][4], When the company was founded it entered a highly regulated transport market. We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. 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. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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. Early on, New Zealand had great lessons to take to the rest of our network. 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. How do you maintain a positive culture and a time of crisis? 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. | Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". Please note that with cookies disabled you will have a degraded experience with some features. I'm pleased I didn't do anything else.". 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. Will His AI Plans Be Any Different? 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. See the full transcript below. Typically modest about his achievements, the 57-year-old is always quick to acknowledge the team effort behind Mainfreights success. He delivers on Mainfreights bold and expansive strategy while still bringing home the bacon for his shareholders. The company is growing EPS and total shareholder returns have been pleasing. 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. Previously, Don was a Political Columnist at Calgary Herald. [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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. Your email address will not be published. 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. Shareholders would be glad to know that the company has improved itself over the last few years. 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. 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. 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. You can be profitable and not collect the cash and go broke. Some of the leading players in the listed retirement sector have been raising capital. Spearheading the management team at New Zealands largest supply chain logistics and transport company has paid off handsomely for Mainfreight group managing director Don Braid. A licence from New Zealand Railways Corporation was needed to carry freight over 150km. [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. As weve matured and grown around the rest of network, were now learning things that we can bring back to New Zealand. Don Braid. New Zealand-based logistics giant Mainfreight is celebrating the roll-out of two new custom-built enterprise software platforms, dubbed Mainmove and . On 11 June 2007, Mainfreight 'signed a call option deed' to purchase the entirety of the shares of Australian-based Halford International. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. | 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. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu.