Sankey charts are a versatile and powerful tool for visualizing relationships between data points. Whether you’re a business professional, data scientist, or simply someone interested in understanding complex systems, learning how to create and use sankey charts can be a valuable skill in your toolkit.

In this comprehensive guide, we’ll explore the basics of sankey charts, teach you how to create them, and explain their applications in various business settings. Whether you’re interested in understanding supply chains, tracking customer journeys, or analyzing project dependencies, this guide will provide you with the knowledge and skills you need to master sankey charts.

What is a sankey chart?

A sankey chart is a visual representation of a flow chart, which shows how data or information moves through a series of elements or systems. The chart can be used to visualize a wide range of relationships, including time, space, and process flows.

To create a sankey chart, you need to start with identifying the nodes or elements that are involved in the flow, and then assign them a direction (such as flow, input, or output). The number and types of elements can vary widely, depending on the context of the chart. As a general guide, a sankey chart can be used to visualize:

• Supply chain diagrams
• Process flow charts
• Resource allocation diagrams
• Customer journey maps
• Project dependencies

Applications and benefits of sankey charts

Sankey charts have a wide range of applications in various commercial settings, including:

• Supply chain analysis: By mapping how raw materials are sourced and transported to end products, businesses can identify inefficiencies and bottlenecks in their supply chain, and make adjustments to improve efficiency and reduce costs.
• Customer journey mapping: By visualizing the flow of customers through the various touchpoints of a business (such as websites, sales channels, and support), organizations can understand where customers are stuck, and how to improve user experience.
• Project dependencies analysis: By diagramming how projects and tasks are interconnected, managers can identify areas of risk and make adjustments to reduce dependencies and ensure everything is completed on time.
• Resource allocation diagrams: By visualizing how different resources (such as workers, equipment, and materials) are allocated to specific tasks, organizations can optimize their use of resources and reduce waste.
• Strategic planning: By plotting strategic initiatives and milestones, businesses can visualize the progress of their goals and make proactive adjustments as necessary.

Creating a sankey chart

To create a sankey chart, start by collecting the data you want to visualize. Think about the elements or systems that will be included in the flow, and decide which ones need direction and which ones should be used as landmarks.

For example:

• You may want to include the following nodes in your flow chart (assuming they represent key elements):

• Consumers

• Sales channels (e.g. online, offline)
• Production facilities (e.g. factory, assembly line)
• Sales agents

• Distribution networks

• By visualizing the flow of each element in the chart, you can see how the elements connect, and understand how a change in one element can affect another.

Now that you have collected the data and identified the elements to include in the flow chart, you can start creating the chart. This will usually involve working backward from the nodes in the flow, and linking the components together using arrows. Here are some steps to consider when creating a sankey chart:

1. Begin with a visualization of the data points you’re tracking, and assign them each a node or element.
2. Use arrows to connect the nodes, indicating the direction of the flow. For example, you might use an arrow to indicate a flow from consumers to sales agents.
3. Include landmarks where needed, for example, using a symbol or icon to identify sources and destinations.
4. Use the lines connecting the nodes to represent the degree of connectivity between the elements. This can help you understand the strength and direction of the flow.
5. Use filters and labels to enhance the visualization and make it easier to understand the data. For example, you might use the labels to explain the orientation or function of each node.

Tips for using sankey charts effectively

Sankey charts can be a powerful tool when used effectively, but they can be difficult to create and interpret for beginners. Here are a few tips to help you get started:

1. Choose the right data and elements: Make sure you have enough data to fill in the chart, and select elements that are relevant and significant to the context of the chart (e.g. sales channels, consumers).
2. Plot in layers: Avoid cluttering the chart with too much data and focus on highlighting the most important relationships and trends.
3. Use a consistent style: Keep your chart style consistent across all uses and avoid varying styles within the chart.
4. Keep it simple: Avoid being overly complex and use simple tools and symbols to present the information.

Conclusion

Sankey charts can be a powerful tool for visualizing relationships between data points, and can be used in a wide range of commercial settings. By following the steps outlined in this guide and taking the time to consider the data and elements you’re tracking, you can create effective sankey charts that help you understand and optimize complex systems and processes.

While sankey charts can be challenging to create and interpret, they can be a valuable resource when used effectively. So be patient, take your time, and don’t be afraid to seek help or guidance when you need it. With practice, you’ll be able to produce stunning sankey charts that bring clarity and insight to your business operations.

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