The current tobacco business logistics of China is still in the stage of the extensive management, the profits of cigarette sales have hidden defect management. Facing the pressure of the coming competition brought by the foreign peers that have the advantages of capital and technology, it is absolutely urgent for China's tobacco business companies to improve the level of logistics management and reduce logistics cost. Aiming at the problem, the composition and characteristics of the logistics cost is analyzed respectively according to the procurement, order, storage and distribution management of the tobacco business companies. Taking a concrete company as example, the optimization scheme is presented to reduce the loss from equipment, staff redundant, operation delay and the waste of resources.