The effect of logistics management, supply chain facilities and competitive storage costs on the use of warehouse financing of agricultural products

Abstract

This study seeks to analyze the effect of logistics management carried out by warehouse operators, the facilities and access provided to support storage, and the competitiveness of storage costs on the use of warehouse financing by suppliers in Central Java, Indonesia. The sampling method was purposive random sampling. The numbers of respondents involved in this study were 120 suppliers and farmers producing first-rate agricultural products and who are users of warehouse receipts in the Central Java region. By using linear regression analysis with assistance, the study results found that the variables of logistic management, facilities and supply chain access as well as competitive storage costs have positive and significant effects on the use of warehousing financing by suppliers and farmers who use public warehousing. This result confirms that the more precisely warehousing is managed, the higher the level of trust of users involved in the logistics business and supply chain of agricultural products to use additional services in the form of warehouse receipts to support the sustainability of agricultural businesses.