LONDON–(BUSINESS WIRE)–Two thirds (66%) of finance leaders say their team is unable to keep pace with the speed of e-commerce. That’s according to an investigative report by Hokodo in partnership with the B2B Ecommerce Association.
B2B e-commerce is going through a fast-paced evolution – with the market set to total $2.641 trillion in 2024 – but Hokodo’s report has revealed that many finance functions aren’t future-proofed. Its pan-industry survey of finance leaders found that 17% of finance leaders feel that their finance team isn’t prepared for the future.
The barriers to finance functions being future-proofed come down to a lack of balance between growth versus control. Almost half (46%) are struggling to strike a balance between financial controls and strategic growth initiatives. When asked whether e-commerce has made managing financial controls more difficult, the majority (39%) agreed. Only 5% strongly disagreed.
Louis Carbonnier, Co-founder of Hokodo, commented: “Despite the fact that the B2B commerce industry is digitising at a high speed, our investigation has found that finance teams simply can’t keep up with e-commerce. Future-proofing starts with tech enablement of the finance team. Whether it’s through reports like this or our digital trade credit offering, our mission is to ensure all Finance Leaders are ready to face the future of B2B commerce.”
Finance leaders are also facing obstacles around cash flow and payment terms. The survey revealed that the top three challenges are working capital management and cash flow unpredictability (66%), cutting costs (49%), and managing payments and payment terms (44%).
These challenges are stopping finance leaders from being able to innovate and ensure that their finance function is future-proofed. Other key barriers to innovation are budget constraints (66%), resistance to change (54%), and lack of capacity (37%).
Christopher Gee, UK Lead at B2B Ecommerce Association, added: “It’s reassuring to see this report offer a pragmatic approach to automating finance processes. This report provides timely insights and valuable strategies for anyone navigating the complex world of B2B finance, balancing efficiency with growth.”
