Group Managing Director, Mainfreight. Component 2020 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. 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. By the way, its not just about us seeing those numbers. Musk Made a Mess at Twitter. 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. 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. Dogged determination, drive and eternal optimism - they're all qualities Don Braid exudes. 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. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. Insight and analysis of top stories from our award winning magazine "Bloomberg Businessweek". 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 In November 2014, Mainfreight acquired a regional air and sea freight company located in Dunedin. See guidance for chairs and directors. His visits to our local and overseas operations guide our teams to be sales-focused and always aiming for operational excellence. | It is totally how I believe a company should be and I love how everyone starts at the bottom. Us taking away that clock was about responsibility and about taking away that control from head office. Mainfreight managing director Don Braid. 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. What are their requirements? Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. Then we just sat back and allowed the de-centralized process to take over and allowed people to take responsibility to get their businesses sorted and in line. Some of the leading players in the listed retirement sector have been raising capital. Today he chairs a group of telecommunication companies. I feed off that and suppose the people in our business like seeing that and see it as an example and follow. Our website uses cookies to give you the best possible experience and to help us understand how our site is being used. Don Braid. Chosen from New Zealand's top companies, this year's Deloitte . Don from Mainfreight talks to Fisher Funds. 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. 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. Shareholders would be glad to know that the company has improved itself over the last few years. And in applying that New Zealand blueprint to all regions, we knew we were pretty much in control. You can be profitable and not collect the cash and go broke. We use functional and analytical cookies on our website to offer an optimal user experience. Managing director Don Braid said the result was pleasing, particularly in light of supply chain congestion and ongoing lockdown disruptions in most of Mainfreight's markets. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. 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". 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. JUDGES COMMENTS [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. Copyright 2023 Institute of Directors Everyone stands on their own two feet. What else do we need to do to satisfy that bunch of customers? Whats changed? Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. I just have a belief and determination that weve got a pretty good business here. | That includes a new facility for Owens Transport in Penrose, Auckland and additional land in Nelson, Hastings, Cambridge and Wellington. Terms of use The reality is, this leadership team in New Zealand has been through the earthquakes and the GFC and now the pandemic. 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. The long-term effects must be carefully studied. In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. Zac: Can you share what some of the great ideas youve actually brought from overseas have been? Youve got to break it down. "You need some energy and you need to be on the front foot," he says. "There's no bureaucracy or hierarchy or superiority in the business. 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. So the weekly P&L puts them on the spot. Don: It should be where your skills are. The firm's shares have been one of the best performing stocks on the NZX, returning more than. His leadership is underpinned by a strong belief in Mainfreight's global competency and capabilities to provide high-quality supply chain solutions for . 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. Some people dont want any more responsibility they find their own ceiling and thats fine. [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. "We were exposed to Covid-19 quite early in the piece, probably earlier than many others because of our operations in China. Click on [Agree] or [Disagree] to accept or refuse cookies. Zac: Don, having a decentralized business, whats been your approach to leadership? In the leadup to the 2017 election, Braid said the country needed to be run by visionaries rather than a couple of accountants and he took aim at Nationals pledge to spend an extra $2.6b on Auckland transport. "I just think that's disgusting," he says. Where do we need to be? Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. 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. In 2006 the New Zealand Mainfreight International and Owens International businesses were also merged to make Mainfreight Owens International Ltd (now Mainfreight International). Both are real legends and seem to really walk the talk. Mainfreight's net profit rose by $40.1m to $188.1m. For more information, please visit our cookie statement. Theres no bullshit in the numbers, they are what the business has earned. This article by Simply Wall St is general in nature. 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. After receiving the 2016 Infinz Leadership Award he told staff if this is a tick in the box for the way we have done things or are trying to do, and for what were trying to create, then well take that tick. Proud of its family ties, Mainfreight also employs Braids sons, Jason and Corey. Required fields are marked *. Photo / Supplied . 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. Contact. "If you allow the recession to roll over the top of you there's a great chance it will.". Any enquiries, or to book a table, please emailNatalie Spratt, Auckland Branch Coordinator. 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. Fyfe joined Air New Zealand at the start of 2003 as chief information officer, before becoming group general manager airlines from October 2003 until his appointment as CEO in October 2005. 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. 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). Nothing drives home the state of our roads like a trip on a bike. Don: Um, I think its recognising good people. As a young salesperson aged 19, I couldnt make a cold call. 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. "I don't think any of those things are really of interest to this," he says. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. The worst thing we could do is slow them down with bureaucracy, making them tick a lot of boxes. Zac: What is the Mainfreight way when it comes to culture? For the latest updates on face to face courses and our safety planning see ourresponse to COVID-19 page. We tackle critical leadership, management and economic issues as well as profiling successful local and global leaders. Don: I think empathy is really important. How do you maintain a positive culture and a time of crisis? 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. Don: What we do is measure profit before tax at the branch level and that includes interest and depreciation. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. Previously, Don was a Political Columnist at Calgary Herald. And if you dont make a profit, theres no bonus that year. Your Saturday Briefing: Trumps Comeback Plan, Wall Street Whistles Away, Londons Investment Appeal Is Unraveling as Arm Heads to the US, British Parents Turn to Home Equity to Help Young Buy Property, Japanese Unions Seek Biggest Pay Rise in 25 Years for Workers, Sorry, Fed, Most US Mortgage Rates Were Locked In During Pandemic Lows, Panic Over Metals for EVs Goes All the Way to Automakers C-Suites, Ex-Goldman Banker Ordered to Forfeit $43.7 Million Over 1MDB Bribery Fraud, Twitter Revenue, Earnings Fell About 40% in December, WSJ Says, John Malone andCharter Directors Agree to $87.5 Million Settlement, China E-Commerce Giant JD Set for $1.4 Billion Discount Spree, Between Rounds of Golf, Trumps Searching for the Perfect DeSantis Diss, Your Saturday UK Briefing: Sunak Chalks Up a Win as the Budget Looms, Harrods Shrugs Off Recession Fears as Rich Get Richer, FT Says, Wealthy NYC Family Feuds Over $258 Million Madison Avenue Sale, Tom Sizemore, 'Saving Private Ryan' Actor, Dies at 61, The Exhibit Reality TV Show PittingArtist Against ArtistIs No Masterpiece. So everything that we do is about being here for a long time. Other Current Directorships:
Its revenue is up 5.9% over the last year. 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 Management Magazine, our focus is to inspire New Zealands business leaders and the managers of today and tomorrow to succeed. Zac: Don, what makes you good? 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. 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. Wed prefer to shake hands and know that our integrity and the way that we do business works with our partners long term. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance. He attributed the. In that respect, NZ was the worst effected with weekly revenues during April 2020 down by about 40% on average levels. Other Current Directorships: Information and Communication Services Limited (Chairman), Seronic (NZ) Limited, and his family companies. "It's not about what I've done - it's about what we've done and what the business has done," he says. 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. 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. 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. Don: I get out of the way. Save my name, email, and website in this browser for the next time I comment. "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.". So for the first couple of weeks of lockdown in New Zealand, we were wondering, how deep is this going to go? 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. 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. 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. Don: Im not sure its stress. The Biosecurity Business Pledge group has launched two new biosecurity guides. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. Don: For us, its not about the short game, its about the long game. 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). Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? 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. 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. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. 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. You may withdraw your consent at any time. If you trust your people, look after them and give them responsibility, theyll deliver. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. [8], Headquartered in 's-Heerenberg, The Netherlands, Wim Bosman is privately held and operates more than 1,000 transport units, manage more than 275,000m2 of cross-docking facilities and warehouse area, and employ roughly 1,414 staff within 14 branches located in The Netherlands, Belgium, France, Romania, Poland, and Russia. And what do you believe leaders need to excel at? Don Braid's Phone Number and Email Last Update. 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. Formerly Halford Young, Halford is a private logistics company and freight forwarder with operations and networks in Australia and New Zealand, Japan, Germany, throughout Asia and the United States.[6]. Don joined in 1994 and hes been on the board since 2000 and the CEO for a heck of a long time. Don has over 40 years experience in the freight industry, including 26 with Mainfreight. He previously worked for the Otago Daily Times, after a return to business journalism in 2018. Where should we open next? 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. 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. 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. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. They have over 8500 staff in 280+ locations across 28 countries, so it was pretty cool (and humbling) for us to be able to chat to Don with some of our Business Changing clients recently. 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. I could not get out of the car and go and meet a stranger to ask for the business and now I actually prefer to do that! We asked Group Managing Director Don Braid how Mainfreight has become one of New Zealand's most successful companies. 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. 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. 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. [3][4], When the company was founded it entered a highly regulated transport market. 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. Get in touch with us directly. Don has over 40 years' experience in the freight industry, including 26 with Mainfreight. But, he said, the groups response at the outset of the pandemic had been unequivocal. See the full transcript below. 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. Don Braid of Mainfreight Limited presents key insights for directors about freight and supply chain patterns in the current climate. 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. [2] In 1979, Bruce Plested partnered with Neil Graham, with Graham based in Christchurch and Plested in Auckland. He runs the businesses with consciously egalitarian slant and is no fan of bureaucracy or the trappings of hierarchies. 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 Thanks Mr Braid for sharing your knowledge and insight. FINALIST Its about making sure they dont lose the disciplines that make us who we are but embracing them as people delivering for our customers. He is unquestionably our Deloitte/Management magazine Top 200 Executive of the Year. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. And he should know, having spent his entire working life in the freight industry. We aim to bring you long-term focused analysis driven by fundamental data. Theres no cross subsidies. People thrive on being given responsibility. 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. 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. Our thoughts are with our members and their organisations impacted by Cyclone Gabrielle. I dont believe that. He is an outstandingly consistent and capable chief executive. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. As you get bigger, staff engagement and culture becomes more difficult. 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. We offer lots of training as well, internally and externally. [9], Within its announcement, the Mainfreight sad, "Wim Bosman is a well respected, profitable organisation which will provide Mainfreight with a significant European presence and opportunity to further grow its supply chain logistic services throughout the world. How are we changing the business accordingly? [4] This operation was expanded with depots in Melbourne and Brisbane. d***@mainfreight.com. 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.