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【Case Study】Establishment of a system in Thailand and Myanmar that manages everything from inventory control to accounting, drastically reduced overtime hours/Otsuka Pharmaceutical Co., Ltd.

Otsuka Pharmaceutical Co., Ltd.

Otsuka Nutraceutical (Thailand) Co., Ltd

Otsuka Myanmar Co., Ltd.

Otsuka Pharmaceutical Co., Ltd. known for its long-selling health drink "Pocari Sweat" since its launch in Japan (hereafter, Otsuka Pharmaceutical). In order to further expand its health drink business, including this product, the company has introduced Business Engineering's (B-EN-G) cloud-based international accounting and ERP service "GLASIAOUS" at its bases in Thailand and Myanmar. It has realized a system that makes it easy to check the data you want to see in the format you want to see, even from Japan, thereby improving the efficiency of management operations related to accounting and finance.

 

Before
  • Inventory management in Excel and linkage to the accounting system is done manually, which is time-consuming and error-prone.
  • Inventory management was being done in Excel, so there was a risk of data loss due to file loss.
  • We want to establish a common accounting system structure that can be applied to each new overseas office.
After
  • Data from each department can now be viewed on a single system without having to ask the person in charge
  • The closing process has become more efficient, eliminating late night overtime and reducing work hours.
  • The data you want to see, in the form you want to see it, can now be viewed immediately, even from the Japanese side.
Why GLASIAOUS
Keywords:Inventory control and accounting integration/Reduce work time by improving operational efficiency/Eliminates double entry and reduces errors/Timely confirmation of data from Japan

To streamline the confirmation process from the Japanese side, we considered a cloud service. The decision to use GLASIAOUS was based on its cost and intuitive operability, in addition to its ability to handle everything from inventory management to accounting processes in a single system and local support.

Interview

Expect to solve common issues at the time of setting up overseas offices so that local information can be instantly checked from Japan
Otsuka Nutraceutical (Thailand) Co., Ltd
Managing  Director
Mr. Takao Kushida
Creating a system that enables integrated management from inventory control to accounting

Otsuka Pharmaceutical is engaged in two businesses: a medical business that provides support from diagnosis to treatment of diseases, and a nutraceutical business that supports the maintenance and promotion of good health. In 1998, the company began selling Pocari Sweat, a health drink, in Thailand through local distributors and affiliated companies. In May 2017, Otsuka Nutraceutical (Thailand) Co., Ltd / Otsuka Nutraceutical (Thailand) Co., Ltd ("ONTC") was established to expand the health drink and food business.

Since there were many documents that needed to be signed in the approval workflow of daily operations at ONTC, a major challenge was how to reduce the number of such documents and establish a system that allows approval whenever and wherever the company's top management is located. Therefore, the company initially established an approval workflow mechanism by utilizing cloud-based business application development tools and Excel to streamline the signing of documents.

Although the approval flow was partially systematized, the remaining issue was inventory management. Inventory was managed using an Excel-based system, and when data was linked to the accounting system, it had to be manually entered, and there were also checks and approvals to be performed. Under such a management system, in addition to the errors associated with manual input, another concern was that the data could be lost if the Excel files were corrupted.
We needed a drastic measure to manage everything from inventory control to accounting in one system," said Takao Kushida, Managing Director of ONTC.


Otsuka Nutraceutical (Thailand) Co., Ltd
Finance & Accounting Manager
Ms. Ohnwipa Boonanantabut
Good manageability from Japan is a requirement. On-site support for smooth implementation.

Against this background, Otsuka Pharmaceutical began selecting a system to be introduced to ONTC. The study was based on the premise that the system should be cloud-based and easy to check from the Japanese side, and that it should be able to manage inventory, calculate costs for products manufactured on an OEM basis, and provide support locally. The GLASIAOUS was selected based on a comprehensive evaluation of its realistic cost and intuitive operability.

Mr. Ohnwipa Boonanantabut, Finance & Accounting Manager of ONTC, commented on the implementation of GLASIAOUS: "At first, it took some time to understand the workflow, exporting reports and converting them to Thai, but our local partner company (BBS (Thailand) Co. Ltd., a member of the GLASIAOUS Consortium, provided on-site support, so the implementation went smoothly and we are now using the system without any problems.


Otsuka Nutraceutical (Thailand) Co., Ltd
Accounting Officer
Ms. Inthuon Noipa
Perform accounting processes accurately and quickly, 
Reduce overtime in the accounting department
 

Regarding the effectiveness of the GLASIAOUS implementation, ONTC's Accounting Officer Inthuon Noipa said,
"It's truly convenient to be able to immediately check data from various departments within one system. For instance, if one wanted to verify the numbers on an invoice, previously inventory and production management were managed on separate Excel sheets, so one had to ask the respective in-charge persons to understand the figures. With GLASIAOUS, you can check the necessary information with just one click."
In addition, previously, information on invoices was not easily communicated to the accounting staff, but with the introduction of GLASIAOUS, the information can now be processed quickly and accurately.

Mr. Boonanantabut said, "Accounting work has become easier because we can automate everything from entering invoices to accounting and uploading data to the banking system. Before, I used to work overtime until 10 or 11 pm for the closing process, but after introducing GLASIAOUS, I no longer have to work overtime and can go home on time," he says.
Mr. Kushida said, "We used to print out invoices and other documents on paper for storage, but with the introduction of GLASIAOUS, we were able to go paperless and eliminate the need for storage space. I thought GLASIAOUS was a very flexible system, and it has helped our field personnel more than I could have imagined," he said.


 
Otsuka Pharmaceutical Co., Ltd.Finance and Accounting Department
Manager, Finance, OIAA Division
Mr. Shin Sato

GLASIAOUS Horizontal Expansion Expected to Resolve Issues at Overseas Offices
Otsuka Pharmaceutical also uses GLASIAOUS to integrate inventory management and accounting systems at Otsuka Myanmar Co., Ltd.(hereafter, Otsuka Myanmar) which was established in October 2018 to expand its health drink business in Myanmar.  We considered several candidates, but there were no other options," said Otsuka Pharmaceutical's Shin Sato.
Otsuka Myanmar initially planned to purchase products from Indonesia and sell them to a single distributor. However, the plan was changed and Otsuka Myanmar decided to hold its own inventory and sell its products through multiple retailers. This meant that the company would need to manage inventory at multiple locations and accounts receivable from multiple retailers, which would be difficult to manage using Excel and other tools. This is why they decided to adopt GLASIAOUS.
Thus, Otsuka Pharmaceutical is developing its business in Thailand and Myanmar and strengthening the management and control of local information through GLASIAOUS.
I can view the data I want to see on my PC, and if I need other information, I can ask the person in charge at the base to create a report efficiently using a template on GLASIAOUS," This is really helpful because we can check the data we want to see from Japan in the format we want to see," says Mr.Sato.
Otsuka Pharmaceutical has launched several overseas offices in Asia over the past four years, and Mr. Sato said, "We had to decide which accounting system to use each time. We needed a system that would allow us to choose the right one without hesitation, and we expect GLASIAOUS to continue to play that role in the future.
*This case study was covered in September 2020.
Client information

Otsuka Pharmaceutical Co., Ltd.

Foundation:  10th Aug 1964

Business: Manufacturing, marketing, selling, exporting and importing pharmaceuticals, clinical testing, medical devices, foodstuffs and cosmetics.

Based on the corporate philosophy of "Otsuka-people creating new products for better health worldwide," the company is developing its business as a total healthcare company with both "medical-related business" and "nutraceutical-related business," which aim to cure illnesses and promote daily health by considering people's health as a whole body.

 

 

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