THE FUNCTION OF WAREHOUSE IN ELEVATED SUPPLY CHAIN: (The case study of farmer’s shallots in East Java)

Purpose — This research aims to evaluate the function of the warehouse in increasing the supply chain of shallot production in East Java Design/methodology/approach This research uses explanatory research with a quantitative approach. The object of this research was in four districts of East Java at Nganjuk, Kediri, Malang, and Probolinggo which are the centers of shallot production that have similar environmental conditions. The sampling method in this research used multistage proportional random sampling with 200 respondents as a sample of this research. Data analysis uses the path analysis method by software SEM PLS Software 3.0. Findings The results show that the warehouse has a significant effect on the integrative supply chain variable, the warehouse has no significant effect on the performance Effort variable and the integrative supply chain has a significant effect on the performance efforts variable. Practical Implications Supply Chain Improvement is greatly influenced by the warehouse but not by performance Efforts. Originality/value The key aspect of this research is increasing the effectiveness of warehouse operations in the logistics system and integrated supply chain activities as well as improving the performance of businesses focused on horticulture by approaching farmers and partners (traders). This study expands 96 The Function Of Warehouse. . . . . Vol. 29, No. 1 April 2021 © Centre for Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University the literature on the function of warehouse utilization in Supply Chain activities so that it has an impact on improving business performance.


INTRODUCTION
The management supply chain is a set of activities and decisions that are interrelated in integrating suppliers, warehouse, transportation, manufacturing, traders, and consumers in an efficient (Ling, 2007). The supply chain is a process of interaction between producers, processors, distributors in distributing goods, wholesalers, retailers, and consumers in a marketing system (Chopra and Meindl, 2007;Hudson, 2007). Supply chain management is defined as a set of practices that aim to manage and coordinate the entire demand chain, starting from the needs of the end customer and linking customers and suppliers together into a tightly integrated network (Frohlich and Westbrook, 2002). Other objectives of supply chain management are to improve performance in practice, namely strategic supplier partnerships, customer relations, information sharing, information technology, training, and internal operations (Petrovic, 2007).
Supply chain actors involved in the distribution of shallots are collectors, wholesalers, including suppliers of processing industries, and retailers, both traditional and modern market retailers (supermarkets, hypermarkets, and supermarkets). the horticultural commodities are included in the high-value commodity category so that many farmers cultivate them.
However, there are some significant problems in the shallot supply chain. The longer the product distribution chain, the higher the product price.

Vol. 29, No. 1 April 2021 © Centre for Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
The problem of shallot production is not only price fluctuations at the consumer level, but there is also a low level of productivity of shallots with the average level of shallot production locally and nationally only being able to produce around 9-10 tonnes/ha, this is still far below potential or production targets that should be above 20 tonnes/ha. The low productivity of shallots is due to the lack of quality seeds available, limited production facilities and infrastructure, and the inadequate implementation of specific SOPs in locations (www.bappenas.go.id).
The warehouse has an important role in the process of controlling productivity and reducing costs and production the warehouse is closely related to inventory so that demand can be carefully anticipated. Shallots production is increasing so that optimal warehouse function is needed for shallot damage which can harm farmers, especially in the research location.
Warehouse plays an important role in supply chain activities and affects the costs and activities of the supply chain (Kiefer and Novack, 1999). Warehouse (warehouse) has a role in company logistics to store products (raw materials, semi-finished goods, and finished goods) and provide information about the status, condition, and use of stored goods (Nova, 2012).
The role of warehouses in the agricultural sector is needed during the harvest season to solve post-harvest problems because shallots are easily damaged, difficult to maintain in fresh form so that they can affect prices. The role of warehouses in the agricultural sector is needed during prices. The warehouse functions to accommodate the harvest of shallots in order to reduce prices and maintain supplies. The high productivity of shallots in the province of East Java can provide a more competitive price.
Even so, there are several problems that arise in shallot supply chain activities, including storage. Poor handling of shallots will cause damage or even grow in storage. Good post-harvest handling efforts are needed to extend the shelf life and increase the economic value of shallots.
The role of the warehouse for farmers is very important in distribution. The warehouse is part of a supply chain system that can be applied to store shallot yields from the source point to the warehouse location point. The warehouse has a very important role in the success of farmers in supporting the smooth running of the supply chain. As one of the central areas for producing shallot producers, it is faced with the problem of determining the location and warehouse facilities that have not met standard operating procedures for storage. So far, farmers have relied on houses that are used as warehouses with traditional facilities.
The aim of this research is: The purpose of this study was to determine the function of the warehouse in integrative supply chain activities in improving the performance of the efforts of shallots farmers in East Java Province.

Research Type
The type of research in this research is explanatory research with a quantitative approach. Explanatory research is research that is used in  (Singarimbun, 2006). The research method used in this research is to use the survey method.

Research Location
The location of the research is in Nganjuk Regency, Probolinggo Regency, Kediri Regency, and Malang Regency. Selection of the research sites for consideration geographic location, easily accessible, the central area of shallot production, and the largest land area. The data analyzed is considered able to answer the hypothesis, so that it is able to generally answer the problem of supply chain integration in East Java Province.

Population
The population in this research are all farmers who are members of the Combined Farmers Group in the villages that have been selected in each Regency. The total population of secondary data obtained is 2390 shallot farmers, with details:

Samples
The sampling method in this research used multistage proportional random sampling. Multistage is sampling in two stages or more (Nazir, 2014: 243). This research used multistage because researchers cannot identify the population easily and the population is very large. Having difficulties in identifying a very large population, the sample size in this research was determined using the Roscoe formula.
Roscoe's formula is at least 10 times the number of variables studied and multiples thereof (Sugiyono, 2010: 124) with a degree of error of 5%.
Based on the calculation of the roscoe formula, it was obtained the size of up to 200 respondents. This research used 50 times the number of variables, namely 50 x 4 = 200 respondents.

Sampling Technique
The sampling technique is done in various stages (multistage). The same stages are carried out in each selected Regency. The first stage until the last stage is explained as follows: 1. Four districts were selected as centers of shallots in East Java Province, namely, Nganjuk Regency, Kediri Regency, Malang Regency, and Probolinggo Regency. This selection is based on the shallot planting area in East Java and is chosen as the largest.
2. Selecting the sub-district which is the center of shallot centers from each selected district. Subdistricts are chosen based on the largest shallot producer so that the results are obtained as follows: questionnaire. This assistance also functions as a deeper data extraction by conducting unstructured interviews with the respondents 6. After filling out the questionnaire, researchers conducted in-depth interviews in accordance with the answers given by respondents to the filled questionnaire and also some open questions. Open questions are given to the respondent when the researcher obtains data outside of the questionnaire questions that have been prepared, in order to deepen the analysis of the data obtained. This question is also done to confirm to the respondent that the answer given is the right answer according to the opinion of the respondent.

Validity Test
The validity test is to determine the validity of a research instrument that will be measured using a measuring instrument (Cooper, 1995). A validity test is the accuracy or accuracy of an instrument used as a measurement. Validity coefficient> 0.30 can be considered for the minimum level. Loading approximately 0.40 will be better and> 0.50 is practically significant (Syamsul, 2014: 33). Testing the validity in this study using Sem PLS 3.0 software with testing 30 respondents.

Reliability Test
Reliability tests to measure the consistency of measuring instruments that can show accuracy, consistency, and accuracy of measuring a concept (Abdillah, 2015). Cronbach's alpha. Measuring the lower limit of the value of a construct on reliability. The alpha value must be greater than 0.60.

Vol. 29, No. 1 April 2021 © Centre for Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
Composite reliability is used to measure the value of the construct on reliability. Composite reliability is considered to be able to estimate internal consistency in a construct (Gopal, 2002in Syamsul, 201434).

Research Hypothesis
Based on the background, the formulation of the problem, the purpose of the research, and the explanation of the theoretical studies and empirical data of previous research. Then the hypothesis proposed in this research are as follows: H1: Warehouse has a significant effect on supply chain integration H2: warehouse has a significant effect on performance Efforts H3: supply chain integration has a significant effect on performance Efforts  (Faber et al., 2002) Table 5 shows the path coefficient of 0.226 with a t-statistic of 3.510 and a p-value of 0.000, so the conclusion is H1 is accepted. This shows that an increase in warehouse activities will have an effect on increasing supply chain integration activities This is because the warehouse is used to accommodate seeds and store the harvested shallots. Although Warehouse is still traditional and the unavailability of modern facilities, while farmers still use the warehouse with minimal facilities as storage shallots. However, the traditional use of warehouses still supports the process of supply chain integration and provides benefits for farmers. Richards (2011), said that a warehouse is a special facility designed for the storage of goods that are planned and fixed with the optimal level of service and the most affordable total costs. This is evidenced by several previous studies which state that the warehouse plays an important role in supply chain activities, which can affect both costs and supply chain activities (Kiefer and Novack, 1999). Research conducted by Rene, et al. (2002), said that the world of warehousing is changing rapidly and improving the overall supply chain performance.
The warehouse is a logistics system for a company or organization that stores products (raw materials, spare parts, goods-in-process, finished goods) (Lambert, 1993). The warehouse is part of logistics which has the role of storing products (semi-finished goods, raw materials, and finished goods) and the warehouse can provide information about the status, condition, and use of stored goods. Warehouse management includes all planning and control procedures for operating the warehouse (Nova,

Testing the Effect of the Warehouse on performance Efforts
The results of testing the effect of the Warehouse on the Integrative Supply Chain can be seen in table 5, the research hypothesis being tested is as follows: H2: Warehouse has a significant effect on performance Efforts This is because farmers choose to use the warehouse to store seeds.
Farmers do not use the warehouse as a place to accommodate their crops.
The impact of using a warehouse resulted in farmers not monitoring the yield of shallots. To avoid the risk of damage to shallots, the majority of producers (farmers) choose transactions directly against traders. This shows that in this study the warehouse system does not influence performance Efforts so that it cannot affect the increase in performance Efforts of producers (farmers).
The research that has been conducted is not in line with the research conducted by Ramaa, et al. (2012) which states that the warehouse management system is a contributing factor to the increase in performance Efforts and productivity in the supply chain activities. Therefore it can be said that warehousing affects the performance of the entire supply chain.
Warehouse productivity warehouse management system is much faster and more accurate than when operations are performed manually.

Vol. 29, No. 1 April 2021 © Centre for Indonesian Accounting and Management Research Postgraduate Program, Brawijaya University
The research that has been done does not support each other with the theory put forward by Warman (2004), which states that a warehouse is a facility used to store goods. Warehousing processes that need to be planned and controlled include: handling of inflows, assigning location to location, storing products, allocating locations for inventory, collecting and releasing orders, taking orders, packaging, value-added logistics activities, and shipping (Ackerman and La Londe, 1980;.
In this study, farmers did not use the warehouse according to its function, where the warehouse should be used as a storage area for crops, but farmers used the warehouse as a place to store shallot seeds.

Supply chain integration has a significant effect on performance Efforts
The results of testing the effect of the Warehouse on the Integrative Supply Chain can be seen in table 5, the research hypothesis being tested is as follows: Table 5 shows that the path coefficient is 0.613 with a t-statistic of 10.652 and a p-value of 0.000, so the conclusion is that H3 is accepted.
This shows that an increase in supply chain integration activities will have a significant effect on improving performance Efforts. Because the producers (farmers) and cooperating merchants have a good relationship for the creation of an integrated supply chain that is mutually beneficial.
This means that the more enhanced integrative supply chain will improve performance Efforts (farmers). This is evidenced by several previous studies which stated that an integrated supply chain has an impact on improving performance Efforts and can help companies to invest more Increasing integration between suppliers and consumers, the performance will increase to gain the trust of suppliers and consumer loyalty. Performance measurement is needed for monitoring and controlling, communicating organizational goals to functions in the supply chain, knowing where the position of an organization is relative to competitors and the objectives to be achieved, and determining the direction of improvement to create competitive advantage.
This research is also in line with research conducted by Suhaiza (2005), which states that an integrative supply chain has an impact on performance Efforts thereby helping local buyers prepare to buy more crops. Local traders must continue to integrate their main strategies with suppliers and customers and a key factor for the success of an integrative supply chain is the cooperative relationship between different partners in the supply chain, in particular, trust and relationship commitment.
Integrative supply chains connect customers, suppliers, and other channel members by integrating relationships, activities, functions,

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processes, and locations (Kim and Narasimhan, 2002), integrative supply chains are defined as the extent to which all activities in an organization and activities of suppliers, customers, and other integrated supply chain members (Flynn, et al. 2010).

CONCLUSION
The conclusion in this study is that the warehouse provides an important role in the logistics system and integrative supply chain activities as a whole. Integrative supply chain activities have an influence on improving the performance of farmers' efforts in the management of the shallot harvest. This occurs because of the relationship of trust between farmers and partners (traders) in harvest management activities. This research is used as input for farmers and partners (traders) in activities to improve horticultural resource management.

SUGGESTION
Based on the foregoing conclusions, researchers provide advice and are expected to benefit farmers and others. As for the advice given to scientist as follows: 1. For the shallots producers to increase cooperation and implement a chain of well-integrated integration between farmers, trade partners, agricultural and local government counseling because the yields from four areas as the research locations are one of the production centers for the province of East Java.
2. The next research to consider the criteria of respondents based on