But, given the analysis on our cost, we did realize that we need to intervene on both our industrial side and our selling and administrative costs. On the industrial side, we are — we already started the process a few years ago, and we will keep monitoring and working closely with our operations department in order to find opportunity to improve the marginality and to have a more agile, versatile industrial footprint. We are keep working with our outsourcing in Vietnam, and we are reducing the number of works in China and in Romania to align our structure to the current level of demand. Same as for the Italian operation, the upgrading of the plants and the continuum of reduction of redundant work is part of the plan and that keeps going. What is becoming new and more influence to discuss at this stage is the work that we are doing on our SG&A structure, where we did start a deep analysis on our processes to verify the maximum level of optimization in order to decrease operational costs and head count to get significant savings and to boost and accelerate all these actions.
So to give you and go more details and explain it, so to let you understand what we are doing. I will give you some concrete examples. We are analyzing all operational side, and we are trying also to reduce the complexity of our operations. As an initial program, for example, we focus on our Natuzzi Editions cover codes (ph) offer and for cover codes, it means the variety of possibility that we give to our customers and we were able to reduce it from 150 to 253. And you can imagine what that imply these in terms of purchasing stock management of the stock and in terms out of communication and retail experience. So once we will put in practice all of these findings, we will expand this approach to the other markets and to Natuzzi Italia and Mr. Natuzzi has been involved in this.
Of course, this will not impact on our customers in terms of quality and variety of our offer. And also in terms of maximization of the current situation for the codes and the materials that will be dismissed. We have specific programs to incentivize the depletion of the stock. Talking about the stock, we are also shortening the supply chain processes and we are getting our supply portfolio closer to the relevant manufacturing plants so that we will save on delivery times. And we are also reviewing all the algorithm for the forecast of the purchase to decrease — to align it more category to the recent trends and working also with the purchasing department to see if there is any possibility of intercompany transfer to optimize the financial and the supply demand.
Another activity that we have done recently is the centralization of the group credit management at HQ level to reduce the position abroad. And by doing this, we have reached positive results in reducing the number of group DSO, and we were able to better forecast our cash flow so to maximize it. So as you can see, there is a spectrum of activities that we already launched and the analysis they are going in this moment in order to find the best set up for the future, as I mentioned before, to achieve significant savings. This is what we have been working on the operational and size. To be also more specific and to go, as Antonio was mentioning, given our finance structure and talking about our net finance cost we report EUR2.7 million of finance costs and EUR1.6 million deriving from interest expenses and bank charges.
