The dynamic, interactive and complex nature of global supply chains provides a tremendous challenge for supply and logistics executives. The development of global supply chains has become a critical success factor not least for Nordic companies, and should be seen as important in gaining entry into emerging markets such as China and East Asia. Many companies have experienced problems in shifting their supply chain abroad into low cost regions, and supply chains often end up with high total landed costs. This paper reports on the findings from a case study at IKEA and their global supply chain development. The research aims to better understand the challenges supply chain managers face in global supply chain development.