Finance leaders struggle to keep up with pace of B2B e-commerce

By Gloria Methri

B2B commerce is digitising at a high speed, with merchants promising the slick e-commerce experiences that millennial buyers have come to expect. But finance teams are being left to struggle with legacy tech and outdated processes, so they can’t innovate or keep pace with digital practices.

As e-commerce surges toward an anticipated market value of $2.641 trillion in 2024, a startling 66% of finance leaders report that their teams are unable to keep up with its rapid evolution. A recent investigative report by Hokodo, in collaboration with the B2B Ecommerce Association, reveals that many finance functions are not prepared for the future.

The pan-industry survey of finance leaders found that 17% of finance leaders feel that their finance team teams are ill-equipped to navigate the complexities ahead.

The primary challenge? A critical struggle to balance financial controls with the demands of strategic growth. Almost half (46%) are unable to strike a balance between financial controls and strategic growth initiatives. Moreover, 39% agree that the rise of e-commerce has exacerbated the difficulties of managing financial controls, with only a mere 5% expressing strong confidence in their current systems.

Louis Carbonnier, Co-founder of Hokodo, said, “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. Futureproofing starts with the 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 is 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.”