Sankey charts, also known as channel diagrams or information flow diagrams, are a visualization tool that can help you understand complex flow of data, information, and resources. These charts combine two other commonly used network visualization tools – Gantt charts and Pareto charts. In this article, we will explore the basics of creating a sankey chart and its applications in business and finance.

What is a Sankey Chart?

Sankey charts are circular networks of elements that represent relationships between different entities. It uses a flow of data, information, or resources to illustrate causal flow, or the flow of resources between different entities. The chart usually starts at the origin and travels clockwise across the flow, using smaller circles for each unit of flow.

Sankey charts are especially useful for showing the flow of data or resources between different entities, such as production processes, organizations, or supply chains.

Creating a Sankey Chart

Creating a sankey chart is relatively easy and can be done using computer software or online tools. You can start by identifying the nodes or units that represent the entities or flows you want to show on the chart. These nodes can represent anything, including product types, customers, suppliers, or processes.

Next, you need to create a network of arrows connecting the nodes. These arrows represent the flow of the data or resource between the nodes. The arrows should have a consistent direction to identify the flow of data or resources in a clockwise direction.

You can use various software tools to create sankey charts. Online visualizations like Canva or D3.js can help you design sankey charts. If you prefer to create the chart manually, Visio or Microsoft Visio can help you visualize the flow of data or resources.

Sankey Charts Applications

Sankey charts have numerous applications in business and finance. Here are some of the ways you can use sankey charts to showcase data flow effectively:

1. Manufacturing Process Flow:
   sankey charts can help you visualize the flow of data or resources between different stages of a manufacturing process. It helps managers visualize the flow between different equipment or machinery units to determine bottlenecks, inefficiencies, or areas where improvement is needed.

2. Supply Chain Analysis:
   Sankey charts can help you visualize the flow of data or resources between suppliers, distributors, and retailers. It can help you identify supply chain weaknesses, inefficiencies, or bottlenecks that can affect the overall operation of your business.

3. Inventory Analysis:
   sankey charts can help you visualize the flow of information or resources between different inventory levels. It can help managers understand the demand for inventory and the flow between different inventory levels.

4. Sales Forecasting:
   sankey charts can help you visualize the flow of information or resources between different products and channels. It can help managers understand the sales forecast and the flow between different product categories and sales channels.

Conclusion

Sankey charts are a useful tool for understanding the flow of data, information, and resources. By creating sankey charts and using it effectively, you can present complex data in a clear, visual, and intuitive manner. Whether you are a business analyst, operational manager, or a finance professional, sankey charts offer insights into the flow of data, information, and resources that help you make informed decisions and make your business more efficient. So, if you want to unlock the secrets of sankey charts, start exploring them today, and see how they can help you in your business and finance needs.

SankeyMaster

SankeyMaster is your go-to tool for creating complex Sankey charts . Easily enter data and create Sankey charts that accurately reveal intricate data relationships.