The Team's Board Report - Mainfreight

39
Logistics Overview New Zealand & Australia
– Craig Evans
The start of the new financial year is showing
some encouraging trends in our New Zealand
business compared to 2006. As we come to
grips with new operations in both Auckland and
Wellington, the overall results see new business
growth averaging 19% for the first two months.
Whilst we have a way to go, we are starting to
absorb some of the new facility costs and startup
investments which were put in place ahead
of expected new business capture.
Hastings was sold in early April, following
lessons learned regarding the risks associated
in running pick and pack facilities in more
remote provincial regions.
As our customers’ expectations continue to
shift to more Asia Pacific regional outcomes,
our ability to meet these challenges will
see even greater emphasis on operational
standardisation and consistency across
countries.
For New Zealand the days of localised
relationships are diminishing at a rapid rate, as
our decision makers are increasingly overseasbased
and influenced.
Australia plays a significant role now, where
the new business capture and quality of our
service will have a direct impact on extended
opportunities in the New Zealand market from
customers seeking trans‐Tasman solutions.
Our Australia growth has been strong and signs
continue to provide confidence that expected
growth can be maintained well beyond 2007.
We are proud of our achievements and know
the challenges ahead are large but very exciting
To meet these challenges the business
has leased more warehousing space and
commissioned the building of more warehouse
capacity in an expansion phase which is
unprecedented in our history. The growth and
strengthening of our experience within our
teams is now paramount.
For team members wanting to extend
themselves and seize opportunities to take on
more responsibility, now is the hour to apply
yourselves through diligent work ethics and
knowledge gain, as it will only be a matter
of time before someone will tap you on the
shoulder and recognise these efforts and skills.
Succession planning and investment in quality
people who are able to advance is paramount to
our success; all branches have a responsibility
to make this their top priority this year.
Across all countries we must strive to provide
quality on a consistent basis, as reputation
supported by customer referrals plays a large
part in gaining new business. To achieve this we
must all play a part in the way our operations
look, our house-keeping, our adherence to our
manuals and operating disciplines.
New Zealand Logistics – Craig
Evans
New business growth remains our focus as we
look to target building utilisation over a 90%
threshold.
Westney Road’s turnaround in recent months
is a result of rationalising operating costs and
bringing a greater focus on the placement and
productivity of our team members; a lesson we
should all adhere to ongoing. Well done.
Remember more people does not equate to
greater productivity; better people, better
systems will make us a better business
The new operation in Railway Lane has
provided its own unique challenges. The team
there has done a wonderful job, nurturing and
delighting the customers. A turnaround of
fortunes is close as we look to make changes to
capture new business.
Geoff and our small Dunedin team have had a
new lease of life and have started to pump out
some strong results.