A recent investigation reveals that the rapid growth of e-commerce is leaving many finance leaders struggling to keep up. Two-thirds (66%) of finance leaders say their teams are unable to match the speed of change, according to a joint report by Hokodo, a leading provider of flexible payment terms, and the B2B Ecommerce Association.
Fast-Paced Market, Slower Finance Teams
The B2B e-commerce market is on track to reach $2.641 trillion by 2024. However, the report highlights that many finance functions remain unprepared. Nearly a fifth (17%) of CFOs and finance leaders admit their teams lack the necessary tools and strategies for the future.
The main obstacle, according to the study, is balancing growth and control. Almost half (46%) of those surveyed struggle to maintain financial controls while pursuing growth initiatives. Additionally, 39% believe that managing these controls has become even more difficult in the face of e-commerce’s rapid expansion.
Cash Flow and Payment Challenges
Cash flow unpredictability and payment management are barriers. The top three challenges finance leaders face include managing working capital (66%), cutting costs (49%), and overseeing payments and payment terms (44%).
“Despite the digitization of B2B commerce, finance teams face numerous barriers and can’t keep pace with e-commerce,” said Louis Carbonnier, Co-founder and President of Hokodo. “Future-proofing begins with tech enablement.”
Barriers to Innovation
Budget constraints (66%), resistance to change (54%), and a lack of capacity (37%) are preventing innovation within finance functions. These issues leave many finance leaders unable to future-proof their operations.
Christopher Gee, UK Lead at the B2B Ecommerce Association, adds: “This report provides timely insights and valuable strategies for finance leaders trying to balance efficiency with growth.”
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