Alfa International: Helping to Feed the Russian Far East


Alfa International is a private wholesale food company started in 1991. Based in Khabarovsk, Alfa sells meat and dairy products to stores, small meat-processing enterprises, hospitals, schools, and milk processors in Khabarovsk and other cities throughout the Russian Far East.

Alfa International invests in the future of the company by providing a variety of local and overseas training opportunities for its workers. Human resource development is an important part of the company's philosophy.

As Alfa has grown, this forward-thinking enterprise has used the services of two volunteers to improve its financial management. In April 1998, Alfa requested that finance specialist James Gourley assess the company's operations and provide recommendations to improve its financial management. Gourley provided training and advice on Alfa's organizational structure and accounting, budgeting, cost controls, financial warning signs, and market-driven management.

During the first week, Gourley was introduced to the full operations of the company. The second week, he and Alfa's managers worked together to develop recommendations and a plan for change. The third week, Gourley helped Alfa to begin implementing the changes.

In February 1999, Alfa requested a second CSRE volunteer to take their improved financial systems to the next level and develop new computerized tools to automate and streamline financial management. Another financial services specialist, Randall Dickey, helped consolidate separate reports into a set of timely, condensed financial reports for senior management of the company. Prior to his volunteer assignment, Dickey researched various accounting software packages. He and Alfa's managers concluded that specialized software would be too expensive, given current business conditions in Russia. Instead, Dickey helped design new financial reports using inexpensive Microsoft Excel software.

"Gourley taught us many important principles in financial management, including budgeting processes and the use of business statistics," said Tamara Volovik, Alfa International's Manager on Foreign Economic Relations. "He also helped us to reorganize our accounting and financial management staff and functions, which has made us much more effective."

"Then, by helping to consolidate financial information from various parts of the company, Dickey also provided very useful assistance," said Volovik. "Because of the daily financial reports that we now receive, we are able to save a lot of money."

The company maintains contact with Gourley and Dickey, who continue to provide assistance and advice. "It is a very difficult time in Russia," said Volovik, "but we are still surviving. We have made good use of the CSRE volunteers' assistance."

"Our employees have attended many business training courses, which are helpful. However, volunteer technical assistance is much more useful because the experts can study our particular situation. They can see our particular strengths and weaknesses and help us to improve," concluded Volovik.