A recent report by Hokodo has highlighted a significant challenge for finance leaders: keeping pace with the rapid evolution of e-commerce. The B2B e-commerce sector is on track to reach a staggering USD 2.641 trillion by 2024. Despite this growth, many finance functions and enterprises are struggling to adapt, with nearly 17% of CFOs and finance leaders admitting that their teams are not adequately prepared for future developments.
Key Findings from the Hokodo Report
The Hokodo report, conducted in collaboration with the B2B Ecommerce Association, reveals several critical insights:
Balancing Development and Control
One of the main barriers to future-proofing finance functions is the difficulty in balancing development with financial control. Nearly half (46%) of the surveyed finance leaders are struggling to reconcile the need for robust financial controls—essential for managing resources and ensuring accuracy—with the demands of strategic growth. The majority (39%) believe that e-commerce has made managing these controls more challenging, while only 5% disagree.
Challenges in Cash Flow and Payment Terms
Finance leaders are also grappling with issues related to cash flow and payment terms. The report identifies key challenges including:
- Working Capital Management and Cash Flow Unpredictability (66%)
- Cost Reduction (49%)
- Management of Payments or Payment Terms (44%)
These challenges hinder finance leaders’ ability to optimize their functions and prepare for the future. Additional barriers to innovation include:
- Budget Constraints (66%)
- Resistance to Change (54%)
- Lack of Capacity (37%)
Actionable Insights and Advice
The report, titled ‘Hokodo Investigation: Are Finance Leaders Ready for the Digital Transformation of B2B Commerce?’, offers actionable advice for finance leaders. Its goal is to equip them with the necessary insights and strategies to navigate the complexities of B2B commerce in a digital age. The report emphasizes the need for finance leaders to adapt to the evolving landscape and overcome the barriers that currently impede their progress.
As B2B e-commerce continues to expand, the ability of finance teams to adapt and innovate will be crucial in maintaining competitiveness and ensuring long-term success.
