While they have a similar look, they serve quite different purposes. Contract management is not covered by a document management system. Using a contract management system to handle paperwork, on the other hand, isn't the greatest approach. Both systems have various functions that affect how these papers and contracts are handled.
Take a look at how a document management system differs from a contract management system.
What are the differences?
While contract management and document management systems do a lot of the same things, contract tracking software is a separate programme. Some key distinctions between the two are as follows:
- DMS is concerned with the larger body of papers in your organization.
- Automated approvals and obligation tracking are not included in DMS.
- Contract writing templates, revision tracking, and approval facilitation can all be aided by DMS.
- Less contract-specific information is tracked by DMS.
- DMS covers correspondence, contracts in process, and completed documentation.
- DMS can provide assistance to your legal department.
- CMS monitors a limited number of contract papers.
- CMS collects contract metrics as well as contract lifecycle data.
- CMS categorizes contracts based on their name, milestones, and stage in the contract management lifecycle.
- CMS has the ability to set up notifications and automatically renew contracts.
- CMS provides contract templates, contract conversations, contract approvals, and contracts that have been completed.
- CMS are intended to tackle difficulties in enterprise-level enterprises.
What is a Document Management System (DMS) and how does it work?
Document management software (DMS) allows users to create, store, retrieve, and save documents. A document management system (DMS) is a centralised database that allows for secure document exchange. Document collaboration includes editing, version tracking, setting up audit trails, and document ownership. The basic purpose of a document management system is to offer structure and efficiency, allowing employees to communicate and fulfil document-based activities with ease. Because of the centralised and collaborative software provided by a DMS, employees may rely less on email and other means of communication.
What is a Contract Management System (CMS) and how does it work?
A contract management system is software that allows users to update, track, and assess contracts in real time, allowing them to manage contract lifecycles in real time. A content management system (CMS) is a central repository for all of your contracts, drawings, and templates that allows for rapid sorting, searching, and filtering. All legal contracts for your firm must be created, negotiated, amended, signed, and evaluated by a CMS. The ultimate goal of a contract management system is to automate procedures within the contract management process, resulting in greater efficiency.
Which should I use?
You can select any approach based on your company's specific aims and objectives. If your firm or legal department, for example, interacts with a large number of complicated contracts on a regular basis, a contract management system will undoubtedly increase your productivity and outcomes. To assist with document storage and management, you might want to look into a document management system that is both highly regulated and organised.
Conclusion
Finally, based on your company's specific goals and needs, make the best and most educated decision feasible. Understanding the functions, similarities, and differences between a document management system and a contract management system can help you choose the right one for your business.
If you want to read more about DMS and CMS Read:- Document Management System and a Contract Management System
