Build an interactive violin chart to understand the distribution of your e-commerce sales
An Italian economist, Vilfredo Pareto, developed a mathematical formula in 1906 to describe the distribution of wealth in Italy. He discovered that 80% of the wealth belonged to 20% of the population.
A few decades later, this rule has been generalised to many other applications, including Supply Chain and Logistics Management.
This principle, called the “Pareto Principle”, “the 80–20 rule” or “The Law of Trivial Many and Critical Few” can be translated for Logistics Practitioners
- 80% of your company's revenue is made from 20% of your reference
- 80% of your volume is picked in 20% of your picking locations
- 80% of your replenishment volume will be performed on 20% of your picking locations
In this Article, we will explore how to apply the Pareto Principle using an actual Logistic operational example.
This repository code can be used to build a visualisation tool to apply the principles presented in this article.
Use the code in this repository as the first step of the analysis to duplicate the example and render it using Python Flask.
- Copy the GitHub repository to your local folder and create a local Python environment
- Download libraries listed in requirements.txt
pip3 install -r requirements.txt
- Launch app.py
py app.py
Share these visuals with your operations and marketing teams to understand what drives your sales.
- The full write-up, with the reasoning behind the code: Build Interactive Charts using Flask and D3.js
- Test what you learned: the Supply Science App has a quiz on the supply chain control tower and the analytics track, free and in the browser.
- 100+ case studies with their source code: samirsaci.com
Samir Saci, supply chain engineer and data scientist with ten years in operations across Asia and Europe. Founder of LogiGreen, creator of Supply Science. For consulting on analytics and sustainable supply chain transformation: LogiGreen. More about me: samirsaci.com/about · LinkedIn