FedEx uses a hybrid warehousing strategy that is decentralized internationally but centralized nationally. This allows them to have warehouses close to customers internationally to reduce delivery times, while taking advantage of economies of scale within countries by operating fewer, larger warehouses. When implementing a warehouse management system, FedEx considers the physical characteristics and storage requirements of each item, as well as warehouse dimensions and capacities. It also decides on configuration details like placement and retrieval processes. A successful implementation requires input from warehouse operations to understand daily processes without disrupting regular activities.