Finance leaders struggling to keep up with eCommerce evolution
Two-thirds (66%) of finance leaders believe their teams are struggling to keep up with the rapid pace of eCommerce, according to a survey conducted by Hokodo in partnership with the B2B Ecommerce Association.
B2B eCommerce is evolving swiftly, with the market projected to reach a total of USD $2.641 trillion in 2024. However, Hokodo's report highlights that many finance functions are not adequately future-proofed. The survey, which included chief financial officers as well as finance leaders across various industries, found that nearly one-fifth (17%) of finance leaders feel their finance teams are unprepared for future challenges.
The report identifies multiple barriers to making finance functions future-proof, primarily the difficulty in balancing growth with stringent financial controls. Almost half (46%) of the respondents mentioned they struggle to find an equilibrium between managing financial resources and pursuing strategic growth initiatives. A notable 39% of finance leaders agreed that eCommerce has made managing financial controls more challenging, whereas only 5% strongly disagreed.
Louis Carbonnier, Co-founder and President of Hokodo, commented: "Despite the fact that the B2B commerce industry is digitising at a high speed, our investigation has found that finance teams are facing numerous barriers and simply can't keep up with the pace of eCommerce.
"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," he said.
Apart from the struggle to balance growth and control, finance leaders are encountering specific obstacles regarding cash flow and payment terms. The survey revealed that the top three challenges for finance leaders are working capital management and cash flow unpredictability (66%), cutting costs (49%), and managing payments and payment terms (44%).
These challenges hinder the ability of finance leaders to innovate and ensure their departments are prepared for the future. The survey also identified other significant barriers to innovation, including 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."
The report, titled 'Hokodo Investigation: Are Finance Leaders ready for the digital transformation of B2B commerce?', offers actionable advice for finance leaders.