Rohto’s country-specific ERPs created siloed operations, hindering global SCM integration and efficient financial reporting.
The company implemented Dynamics 365 with Microsoft Fabric and Power Platform to unify data, streamline supply chain management, and support a global ERP rollout.
Rohto reduced data entry time by 50%, improved productivity, and established a foundation for AI-driven operations using Microsoft Copilot.
Founded in 1899, Rohto Pharmaceutical has produced and sold gastrointestinal medicines, eye drops, and topical drugs. Since 2000, it has expanded into skincare with brands such as Obagi, Hada Labo, and Melano CC. The company has also entered regenerative medicine, agriculture, and food services, delivering "well-being" to people and society through its core value of health.
Today, the group has over 100 subsidiaries and delivers products to more than 110 countries. Respecting local regulations, cultures, and values, Rohto emphasizes business development tailored to each market. As a result, the company’s enterprise resource planning (ERP) solutions were implemented and operated independently in each country, making it difficult to integrate supply chain management (SCM) and financial data across the group—a significant challenge for future growth. The company recognized the need for a unified core system that could generate synergy across regions and support global expansion.
Rohto chose Dynamics 365 for its ability to enable cross-functional SCM processes, its compatibility with Microsoft 365, and, crucially, its scalability, ensuring the company is positioned to grow and innovate as technology advances. With Microsoft Fabric as the interface, Rohto leverages a seamless, integrated foundation for connectivity.
Rohto has actively pursued global expansion, starting with the acquisition of Mentholatum in 1988. "We aim to generate international synergy while respecting local business growth, leading to future global expansion," says Mr. Yasumitsu Mori, General Manager of the Enterprise Information Systems Division. However, the previous core systems could not fully support these initiatives.
Ms. Kyoko Kino, Manager at the Global IT Center, explains, "Each country had its own ERP, resulting in siloed operations and information. Data was not integrated between ERPs, and sharing SCM and consolidated information required significant manual work. Reports submitted to headquarters lacked standardized formats, increasing workload and leading to person-dependent operations." To fundamentally solve these issues, Rohto began considering a global ERP in November 2020 and launched a dedicated project team in April 2021.
“We aim to generate international synergy while respecting local business growth, leading to future global expansion.”
Mr. Yasumitsu Mori, General Manager, Enterprise Information Systems Division, Rohto Pharmaceutical
Unified ERP for all regions
Rohto’s unique corporate culture was at the root of its digital transformation design. As Mr. Yoshiki Masuda, Accounting Group Manager in the Accounting and Finance Division, explains, “Rohto Pharmaceutical has a culture of respecting the local customs and practices of each country, and of conducting business while carefully listening to local voices. For this project as well, we thoroughly engaged in ‘Sharing and Learning’ discussions, gathering input from major production and sales countries. This approach enabled us to gain a deep understanding of the situation in each country, which we then reflected in the design of our platform.”
The result was a two-tier platform: “Tier 1” ERPs for each country and a globally integrated “Tier 2.” Not only was Dynamics 365 the superior choice for its cross-organizational SCM capabilities, adaptability, and strong integration with Microsoft 365 and Power Platform; it was cost-effective too.
“Each country had its own ERP, resulting in siloed operations and information. Data was not integrated between ERPs, and sharing SCM and consolidated information required significant manual work.”
Ms. Kyoko Kino, Manager, Global IT Center, ROHTO Pharmaceutical
Mr. Tatsuya Maeda, Leader of the Development Team at the Global IT Center, Enterprise Information Systems Division, Rohto Pharmaceutical, explains, “A key focus of this implementation project was how to effectively utilize the information we collect. Even though we talk about ‘gathering data,’ it is by no means simple when each country has its own ERP. However, with Microsoft’s platform, everything from data transformation and management to subsequent utilization can be handled by Microsoft Fabric, allowing us to establish a simple, global data foundation.”
The US Mentholatum Company became the first country to start the Tier 1 implementation project in January 2024. The rollout of Tier 2 and Microsoft Fabric began four months later. The company made the strategic decision to not roll out Tier 1 all at once. “Each country’s business environment, accuracy, and resource situation are different, so the timing of ERP migration must be optimized for each country,” says Ms. Kino. For the Tier 1 rollout, the team takes the time to fully understand the circumstances of each country and, through mutual learning, develops and executes implementation schedules tailored to local conditions.
But where Tier 1 is complete, the company is already seeing drastic changes in productivity and efficiency. “By implementing Dynamics 365, we are now able to collect information much more quickly. Data previously entered manually into the management accounting system is now integrated through transactions, reducing the time required for data entry by half,” says Mr. Masuda.
“By implementing Dynamics 365, we are now able to collect information much more quickly. Data previously entered manually into the management accounting system is now integrated through transactions, reducing the time required for data entry by half.”
Mr. Yoshiki Masuda, Accounting Group Manager, Accounting and Finance Division, Rohto Pharmaceutical
The next implementation site has already been decided, and the kickoff for the rollout project is planned. To ensure efficient and speedy deployment, the implementation in the US will serve as a core template, which will then be localized and rolled out to other countries.
As Rohto Pharmaceutical continues to expand its use of Microsoft Power Platform, it is also adopting Microsoft Copilot. By aggregating data in Dynamics 365, the company expects to enable future AI-driven initiatives and further accelerate business operations.
“Even though we talk about ‘gathering data,’ it is by no means simple when each country has its own ERP. However, with Microsoft’s platform, everything from data transformation and management to subsequent utilization can be handled by Microsoft Fabric, allowing us to establish a simple, global data foundation.”
Mr. Tatsuya Maeda, Leader of the Development Team, Global IT Center, Enterprise Information Systems Division, Rohto Pharmaceutical
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