It remains a very exciting journey., Spearheading the management team at New Zealands largest supply chain logistics and transport company has paid off handsomely for, 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. As a Kiwi living in England and studying management currently, I have really enjoyed reading this interview. But, he said the first seven weeks of trading in the current year has been at similar levels to the past six months. After leaving Timaru Boys' High School Braid joined the New Zealand Shipping Corporation as a clerk in 1976. Braid says the company strives to be de-centralised through giving responsibility to all individuals in the business and letting them make decisions. Don Braid. 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. Bruce would be the first person to say he needed to have great leadership following him if he wanted to bring his hundred year vision to life. Don: I get out of the way. 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.. But well and behold, were in the perfect position not a lot of debt, trading really well, coming off a really good financial year the year before. Don Braid (Mainfreight) Credit: Mainfreight . While there was someone in the drivers seat, the computer took over the vehicle. Should it change? It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. How Does Don Braid's Compensation Compare With Similar Sized Companies? 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]. 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. We applaud that; weve always paid every supplier on the 20th of the month following and we ask the same of our customers. 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. Mainfreight's net profit rose by $40.1m to $188.1m. Braid has been a beneficiary of the meteoric rise in Mainfreight's share price. Im not sure well see driverless trucks in NZ for some time to come. Don: Um, I think its recognising good people. "He's sporting and tough and makes decisions quite fast," Plested says. Mainfreight is publicly listed on the NZ Stock Exchange with a market capitalisation of $8+ billion. Like most Kiwi business leaders, Braid is self-effacing and doesn't fancy talking to journalists about his life outside the company. We got a taste of what was to come early in the piece with our Chinese business and seeing what they were going through. I think our owner drivers are a key component of the relationship with the customer. 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. Founded by NBR Rich Lister Bruce Plested, Mainfreight has become a global juggernaut on Braids watch. Simply Wall St has no position in any stocks mentioned.Have feedback on this article? 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. Its Mainfreights style to offer career progression, giving people here a long-term career in the business, allowing them to find that space to develop the leadership traits. Weve got examples of that in our business right now. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. Thanks Mr Braid for sharing your knowledge and insight. [14], In September 2007, it was reported by Business Wire that Mainfreight had signed a merger agreement with NYSE American-listed Target Logistics for $2.50 a share; for a total of US$54 million. 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. Its revenue is up 5.9% over the last year. He brings strong financial skills and business acumen to the role. Musk Made a Mess at Twitter. Click on [Agree] or [Disagree] to accept or refuse cookies. More importantly, the people in those branches know what they did last week, and which were the right decisions or the wrong decisions. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys High School and has over 43 years experience in freight forwarding and logistics both NewZealand and internationally. 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. 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 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. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. 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. Agreement with print tech giant Canon saves college thousands. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. Don: The recruitment of our people sits with the branch managers. [16] In 2020, CaroTrans Chile was re-branded as Mainfreight Chile. Don: Sometimes I think people dont recognise or believe or have enough passion in what theyve developed. 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. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. Your email address will not be published. "That gives us an enormous amount of opportunity.". Revenues were up $448.4m to $3.5 billion, a 14.5% increase on the prior year, with 76% of that now generated outside New Zealand. How are we changing the business accordingly? New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. Everyone stands on their own two feet. 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. So what you produce in terms of profitability is real. To join your company account for BusinessDesk and enjoy full access, 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 suppose were grooming people all the time for those loaded leadership roles. "I don't think any of those things are really of interest to this," he says. Two other directors joined KiwiRail's board earlier this year, Rob Jager and Ed Sims. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Another attribute is straight talking. He has issued a New research confirms the importance that NZ business leaders place on reputation, but reveals that many companies need to increase their investment in building and protecting it. And then its about exploring the long game. It's interesting to note that Mainfreight allocates a smaller portion of compensation to salary in comparison to the broader industry. Email. 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. While many of its NZX-50 peers have entered a period of stagnation, Mainfreight - it seems - thrives on hard times. And analysts have been warned that they "won't get a second interview" if they make that mistake of calling Mainfreight a "trucking company". The firm has earned a reputation within the market for being slickly-run. 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 may withdraw your consent at any time. I think the only measure of whether weve got the culture right will be seen in the numbers and in the customer service. Terms of use 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. Mainfreight also renamed Wim Bosman branches in the countries France, Poland, Russia and Ukraine under the Mainfreight name.[12]. 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. The long-term effects must be carefully studied. 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. They know that now and can alter those decisions as they head into the week in front of them. 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. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $ 7,200 and a 1969 Bedford truck. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. And I think ultimately, yes, Im responsible for the business, but I enjoy what I do and having great people and a good lifestyle where I can stay fit and have some fun means the stress levels arent that high. d*** Braid said Mainfreight was on track to push close to the $2 billion sales mark by March next year. In the 12 months to March 31, Mainfreight - which has been one of the top performing stocks on the NZX this year - posted record sales of $1.34 billion. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. On the Money: Tim Boyd he's back; James Lee he's leaving, and more New drugs could end the worlds obesity epidemic, Big plus for NZ schools and govt agencies, Growing wealth through our cities growth, Insurers call on government to seize the day, Smoke, mirrors and delay Nationals three waters policy, Former CentrePort CEO Liz Ward joins KiwiRail board. Hes the right man for the job at just the right time. Alternatively, email Its great fun. Appointment to Board 2000 - With Mainfreight since 1994. Weve made this article available for free. [3] [4] When the company was founded it entered a highly regulated transport market. People thrive on being given responsibility. Zac: Don, having a decentralized business, whats been your approach to leadership? Read More . 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. Will His AI Plans Be Any Different? 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. Theres no bullshit in the numbers, they are what the business has earned. Chief executive, Kiwibank Their understanding of disciplines and what the expectations are embedded early on so our culture is strong and then you give them responsibility. Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. Things are changing a little bit and everyones suggesting that its all going to go to eCommerce. 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. Don: I think its quite a long way off. What are the things you do that maybe others dont do that actually make you lead this organization? The relationships we develop, both with suppliers and with customers, are there for the long term. 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. 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. "If you allow the recession to roll over the top of you there's a great chance it will.". [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. I just have a belief and determination that weve got a pretty good business here. 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. Kiwis know the firm largely through its blue trucks that ply our highways, but the company also utilises sea, train and air freight to transport goods around the world. Don: It should be where your skills are. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. 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. 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. 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. Some of the leading players in the listed retirement sector have been raising capital. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own. The company is growing EPS and total shareholder returns have been pleasing. As a young salesperson aged 19, I couldnt make a cold call. "But I was fascinated that he could present this picture of a skeleton of a company and present it so brightly.". 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! [13] The transaction was completed on 6 June 2007. You need to have been there 12 months to earn the full bonus that everybody else gets. See guidance for chairs and directors. Boards have a key role to play in the wake of any crisis. 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. 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. 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. Biography Chosen from New Zealand's top companies, this year's Deloitte . Don: Well, the numbers never lie, right? Where should we open next? Mainfreight commenced operations in Auckland in 1978 and is the largest freight company in New Zealand. The firm's shares have been one of the best performing stocks on the NZX, returning more than. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business.