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The Team's Board Report - Mainfreight

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27<br />

United States<br />

<strong>Mainfreight</strong> USA – John Hepworth<br />

<strong>Mainfreight</strong> USA as a team is<br />

continually building its business<br />

plan and commitment to be a<br />

profitable business in 2011/12.<br />

After feedback from our branches<br />

and a team building exercise at our<br />

Branch Managers Meeting in<br />

Manhattan, New York we are<br />

focusing on six main areas this<br />

financial year;<br />

1. PROFITABILITY<br />

2. Continuous Improvement<br />

3. Trade Lane Specific Selling<br />

4. Everyday Freight<br />

5. Margin Improvement<br />

6. Confidence –<br />

WE HAVE WHAT IT TAKES<br />

We have established domestic<br />

line-haul between the below cities,<br />

this past year, with new lanes<br />

continually opening. Our aim is to<br />

have our five main centers (Los<br />

Angeles, Dallas, Atlanta, Newark,<br />

and Chicago) being our main hubs<br />

that feed each other and all<br />

surrounding offices. This is a big<br />

change for our sales teams so they<br />

now need to focus on “Trade Lane<br />

Specific Selling” and “Everyday”<br />

freight to build these units into<br />

profitable line-haul.<br />

Los Angeles – Newark –<br />

Los Angeles<br />

Newark – Toronto – Newark<br />

Philadelphia – Newark – Toronto –<br />

Philadelphia<br />

Chicago – Toronto – Chicago<br />

Los Angeles – San Francisco –<br />

Portland – Seattle – Portland – San<br />

Francisco – Los Angeles<br />

Los Angeles – Columbus – Chicago<br />

Austin – Dallas – Los Angeles<br />

Atlanta – Memphis – Los Angeles<br />

– Atlanta<br />

Our domestic shipments were up<br />

30% as we continue to build our<br />

Owner Driver program throughout<br />

our network which offers a better<br />

service and gives high visibility to<br />

the <strong>Mainfreight</strong> brand throughout<br />

USA.<br />

Our trans-border divisions also<br />

performed well with Canada<br />

growing 80% this year. Our partner<br />

Sameday (part of the Dan Ross and<br />

McCains group) in Canada has<br />

been an influential part of our<br />

growth. We launched our Mexican<br />

trans-border division this year and<br />

handled over 550 shipments in less<br />

than four months. We are very<br />

excited about this area and are<br />

looking at opening up in Mexico<br />

City in 2012 as well as opening<br />

branches along many of the<br />

Mexican/USA border crossings.<br />

Our Warehousing has become an<br />

integral part of our sales process<br />

when discussing Global Supply<br />

Chain with our customers.<br />

Customers today are wanting<br />

“one-stop” solutions and with over<br />

25 warehouses around the USA we<br />

can offer many services from pick<br />

and pack, cross dock, or long term<br />

storage. With this product only<br />

being sold this year we are very<br />

excited to see our revenues over<br />

$3 million and growing quickly.<br />

Our International division has over<br />

20 air freight consolidations to<br />

various areas of the world on a<br />

daily basis, and continues to grow<br />

as we build confidence in our sales<br />

ability to sell specific markets.<br />

International grew this year by 39%<br />

in revenue, with large growth in<br />

shipment numbers from sea freight<br />

(up 235%), and customs brokerage<br />

up (154%). With strong focus on<br />

key markets and ensuring our<br />

teams continue to improve<br />

processes, and communicating<br />

strongly both with our overseas<br />

offices and customers, we can<br />

expect to create a better margin<br />

return on every file which will make<br />

2011/12 another exciting year for<br />

International.<br />

<strong>Mainfreight</strong> USA is well set for<br />

another strong year of growth with<br />

all our products well established<br />

and doing well. We expect to open<br />

more branches throughout this<br />

financial year as we expand our<br />

reach within the USA. We have<br />

many new graduates joining our<br />

program, now over 20 graduates at<br />

various different stages of their<br />

training with us. With their<br />

ambitious drive we will have our<br />

first set of young branch managers<br />

setting up our small satellite<br />

branches this year. We are all<br />

looking forward to 2011/12 fiscal<br />

year.<br />

Branch Managers<br />

Awards – Night on the<br />

town in Manhattan<br />

This was the first year a branch<br />

was named USA Branch of the<br />

Year – with a individual winner for<br />

each of <strong>Mainfreight</strong> and CaroTrans.<br />

<strong>Mainfreight</strong> offices compete against<br />

<strong>Mainfreight</strong> offices to determine the<br />

MFI branch of the year. <strong>The</strong><br />

<strong>Mainfreight</strong> I.C. offices, our<br />

Independent Contractors, compete<br />

against each other to determine the<br />

I.C. branch of the year.<br />

<strong>The</strong> winner for the year for<br />

<strong>Mainfreight</strong> was Houston, the<br />

runner up Dallas, and the winner of<br />

the year for CaroTrans was Boston.<br />

<strong>The</strong> overall winner for both<br />

companies was <strong>Mainfreight</strong>,<br />

Houston.

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