Streamlining your supply chain is essential for improving efficiency and maximizing profitability. One way to do this is by using Sankey charts to visualize and optimize your supply chain operations. In this article, we will explore how Sankey charts are created, their applications, and how they can be used to streamline your supply chain.

What are Sankey Charts?

Sankey charts are a type of flowchart that are used to display the flow of materials or products through a supply chain. They are particularly useful for identifying bottlenecks, inefficiencies, and areas where cost savings can be made. Sankey charts are named after the Dutch engineer Gerardus Sankey, who first developed the chart in the 1920s.

How to Create Sankey Charts

Sankey charts can be created using a variety of software tools, such as Microsoft Visio, Lucidchart, or SmartDraw. Here are the steps to create a Sankey chart using Microsoft Visio:

1. Open Microsoft Visio and create a new chart.
2. Insert a rectangle for the supply chain.
3. Add arrows to the rectangle to represent the flow of materials or products.
4. Double-click on the rectangle to specify the supply chain’s name and location.
5. Add nodes to the flow arrows to represent the various stages in the supply chain.
6. Double-click on the nodes to specify their names and locations.
7. Add links between the nodes to show the flow of materials or products between them.
8. Format the chart to customize the appearance of the Sankey chart.

Applications of Sankey Charts

Sankey charts have a wide range of applications in the supply chain industry. Some of the most common applications include:

1. Identifying bottlenecks: Sankey charts can be used to identify the bottlenecks in your supply chain, such as slow production lines or inefficient transportation methods.
2. Improving efficiency: By visualizing and optimizing the flow of materials or products through the supply chain, Sankey charts can be used to identify and eliminate inefficiencies.
3. Cost savings: By identifying areas where cost savings can be made, Sankey charts can help companies improve their bottom line.
4. Supply chain planning: Sankey charts can be used to plan and coordinate supply chain operations, such as scheduling production lines or transporting goods.

How to Streamline Your Supply Chain with Sankey Charts

To streamline your supply chain using Sankey charts, follow these steps:

1. Identify your supply chain operations: Start by identifying all of the operations involved in your supply chain, including procurement, production, distribution, and delivery.
2. Create a Sankey chart: Use a software tool to create a Sankey chart that displays the flow of materials or products through your supply chain.
3. Analyze the chart: Review the Sankey chart to identify areas where you can make improvements. Look for bottlenecks, inefficiencies, and opportunities for cost savings.
4. Optimize your supply chain: Use the insights gained from the Sankey chart to optimize your supply chain operations. This may include streamlining processes, re-routing materials, or changing suppliers.
5. Monitor and review: Regularly monitor and review your supply chain operations to ensure that they are running smoothly. If issues arise, use the Sankey chart as a tool to quickly identify and resolve them.

In conclusion, Sankey charts are a useful tool for visualizing and optimizing supply chain operations. By using Sankey charts to create, analyze, and streamline your supply chain, you can improve efficiency, eliminate inefficiencies, and make cost savings.

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