Reducing warehousing costs should be conducted on the premise of ensuring the lowest total logistics cost and not reducing the overall service quality and target level of the enterprise:

1. Reduce the storage risk of storage by first in first out. First in first out is one of the rules of storage management, it can guarantee the storage period of each stored object is not too long, and reduce the storage risk of storage.

2. Improve the storage density and capacity utilization rate. The main objective is to reduce investment in storage facilities and increase the utilization of unit storage area to reduce costs and reduce land occupation.

3. Effective storage positioning system is adopted to improve the efficiency of warehouse operation. The meaning of storage location is the determination of the location of the stored object. If the positioning system is effective, it can greatly save time of finding, storing and taking out, preventing errors and convenient counting. Storage positioning systems can be advanced computer management or general manual management.

4. The effective method of collecting and counting is adopted to improve the degree of difficulty of warehouse operation. Monitoring the quantity and quality of stored materials is good for mastering the basic situation of storage, and also conducive to scientific control of inventory. In the actual operation will make a slight mistake, does not match the account, must promptly and accurately grasp the actual situation of storage, often check card and account, ensure the warehouse goods in good condition, it is essential for the management of artificial management or computer. In addition, regular monitoring is also an important job of detecting the condition of stored goods.

Reducing warehousing costs should be conducted on the premise of ensuring the lowest total logistics cost and not reducing the overall service quality and target level of the enterprise:

5. Accelerate the turnover, increase unit output capacity. An important issue is the modernization of the static storage and dynamic storage, fast turnaround will bring a series of benefits: capital reserve capital turns quickly, high efficiency, cargo damage is small, the warehouse throughput is increased and the cost decreased. The concrete methods, such as adopting the unit accumulation memory and establishing the quick sorting system, are helpful to realize the fast in fast out.

6. Take diversified operations and revitalize assets. Warehousing facilities and equipment input, only in full use of the situation to obtain income, if not put into use, or only inefficient use, will only lead to increased costs. Storage enterprises should make timely decisions and make use of leasing, borrowing, selling and other means of operation to revitalize these assets and improve the utilization of assets and equipment.

7. Strengthening labor management. Wage is an important component of warehouse cost, and the rational use of labor force is the basic principle of the wage of maintenance staff. China is a country with advantages in labor force, low wages, and more labor force is a reasonable choice. Effective management of labor and avoidance of inefficiency are important aspects of cost management.

8. Reduce management costs. The management cost is the enterprise management activity and the management activity expense and the cost disbursement, including management fee, service expense, and transaction cost and so on. Strengthen such cost management, reduce unnecessary expenditure, but also reduce costs. It is necessary to strengthen management when expenses of management and cost cannot produce direct income and return, and cannot be completely cancelled.

Warehousing activities are necessary to promote the development of production and meet the market supply. Warehousing cost is relatively easy to control and manage in the logistics cost. With the improvement of the technology level in the logistics activities, the storage efficiency is also increasing, and the storage cost is also changing. To understand the importance of warehousing in logistics activities, the existing problems and the contents of warehouse cost control, we can take corresponding measures to solve problems, reduce costs and improve efficiency.