Sankey charts, also known as flow diagrams or network diagrams, are a powerful visual representation of data flow that have gained significance in helping us better comprehend complex systems and relationships. These intuitive graphics are particularly useful in enhancing insights, making it easier to visualize trends, processes, and flows in a range of fields. In this article, we will delve into the world of Sankey charts, explore their creation, and discuss their applications in various industries.

What Are Sankey Charts?

A Sankey chart, invented by W. T. Sandeney in 1898, is a type of network diagram that showcases the flow of energy, data, materials, or goods between interconnected points or components. The name comes from the technique used to create the links or ‘sankeys’ – thin, graduated arrows that visually represent the amount being transmitted. These charts are typically horizontal, with source (‘in’) and end (‘out’) nodes, and an abundance of connections in between, demonstrating the flow and balance between different components.

Sankey Chart Construction

1. Define the Context:
   Begin by identifying the system or process you want to visualize. This could be a manufacturing supply chain, a financial transaction, or an energy transmission network. Clearly outline the sources and sinks (nodes), the variables you want to track, and the units used in each.

2. Data Collection:
   Gather the quantitative data that will represent the flow. This could be amounts, quantities, or probabilities. Ensure data is clean, organized, and labeled correctly.

3. Draw the Nodes:
   Create nodes for the starting and ending points, using round or square shapes to differentiate between sources, sinks, and intermediate steps.

4. Represent the Flow:
   For each connection or link (sankey), plot a rectangle or trapezoid with appropriate dimensions to represent the flow quantity. The width of the sankey is proportional to the magnitude of the flow. Darker shades or patterns can be used to distinguish different types of flows.

5. Add Labels and Metadata:
   Include labels on each node and sankey to provide context. For internal sankeys, clearly indicate the direction of flow, and for external sources and sinks, provide quantitative data points.

6. Scale and Formatting:
   Adjust the chart’s axes to accommodate the scale of the flow data and format the labels for readability.

Sankey Chart Applications

1. Supply Chain Management:
   visualize the movement of goods through the production and distribution process, highlighting bottlenecks and inefficiencies.

2. Finance and Banking:
   Track capital flows in investments, loans, and transactions to identify trends and potential risks.

3. Energy and Resource Allocation:
   Visualize the distribution and consumption of energy or raw materials among different sectors or countries to make informed decisions about resources usage.

4. Data Analysis:
   Analyse large, complex datasets to detect patterns and relationship between variables in a more comprehensible way.

5. Policy Making and Environmental Impact Assessment:
   Examine the environmental impact of industries, such as CO2 emissions in transportation, by mapping the flow of resources and emissions.

Enhancing Insights

Sankey charts provide a unique perspective that can lead to deeper insights by visually portraying quantities as they flow. This type of visualization can reveal correlations, patterns, and dependencies that might not be apparent in tabular data. By highlighting areas of high flow or low flow, they can help users identify areas for improvement or opportunities for optimization.

In conclusion, Sankey charts are a valuable tool in visualizing data flow, offering a clear and compelling way to understand complex systems. Whether you’re an analyst, scientist, or business professional, incorporating these charts into your data analysis arsenal can greatly enhance your insights and make decision-making easier. So the next time you find yourself with a system to visualize and understand, consider adopting the wonders of Sankey charts!

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.