Amazon workers shipping goods from inside P&G

|By:, SA News Editor

Amazon (AMZN) has ensconced its workers in seven Procter & Gamble (PG) warehouses, where they ship consumer staples such as Pampers diapers and Bounty paper towels directly to consumers.

Under a program called Vendor Flex, Amazon has had this exclusive under-the-radar relationship with Procter & Gamble for three years. The e-commerce giant is also located inside, or is in talks to enter, the warehouses of other suppliers, including Kimberley Clark (KMB).

The deal between Amazon and P&G enables the former to cut the costs of shipping and storing goods, and better compete on prices, while P&G gets to boost its online sales.