Document and contract management software are often interchanged. However, they are different, and most people get confused between these two. Well, these two are similar, serving unique purposes. You cannot use these interchangeably because the contract management system cannot manage document management systems. There is a difference. Any enterprise won’t allow document management via CMS ( Contract management System).
Let’s break the confusion and start understanding Contract Lifecycle Management (CLM) Systems.
What is CMS?
These systems are designed for contract management throughout their lifecycle. The system can look after several contracts. Being an enterprise owner, if you have a dedicated Contract Lifecycle Management System, you can easily manage decentralized repositories, databases, and contracts. It is one location where you can store your templates, drawings, etc. A contract management system holds the capability to automate the management process.
With CMS, your team need not make new contracts for every occasion. However, the team members in an enterprise can easily log in securely with their credentials. With CMS, whenever there is a new task, the risk of losing contracting or it getting lost gets minimized. You may have seen many Contract management systems come with e-signatures or digital signatures. This process is highly efficient for reducing turnaround time and delays.
What is Document Management Software?
When a small-scale enterprise is not ready to take a complete contract management system, it opts for DMS. A document management system has half of the functionalities you may see in Contract management software. A document management system consists of smooth document creation and storage of some other work. In short, DMS can manage a portion of contract management.
The user with the Document management system can access and track details of different documents. When you use a Document Management System, the need for the usage of manual work and physical paper reduces. By onboarding DMS, you can keep track of the documents sent to your colleagues. It is a quick software to collaborate with business partners on various projects.
The Documentary management System is a help to your legal department. DMS can help you control the versions of documents and their security access. In a contract lifecycle management system, you can revolve your eyes on the data agreements by being contract-centric. There is no need for screening while shifting through different organizational folders. Suppose you have to see “who is exactly working on what” in your organization, you can see that easily. The daily CLM tasks are easy to look at.
- DMS lacks automated approvals whereas CMS automatically renews contacts.
- DMS does not track the specific and minute details of the contract.
- CMS tracks everything and sorts the documents via name, milestone, etc.
- DMS takes care of ongoing work and final documents.
- CMS looks after the contract approvals, contract negotiations, and executed contracts. In short, Contract management software is enterprise-level software.
I am an Enterprise Owner. Should I Use it?
It depends on the unique needs of a business or enterprise. If your company deals with legal documentation that works with intensive contracts, You must use automated contract management software. You can make this decision based on your specific goals and needs. However, you might consider document management software, but a contract management solution is the best & highly-productive software to be used as an enterprise owner. In a contract management system whenever any document is viewed and edited, it generates a new version of that document. It is thus easy to check the audit history to see who made the changes by tracking the whole lifecycle management.
With this, you may have understood that managing legal documents is not a hassle. It is a matter of using the right software that can streamline the work. If you are an enterprise owner, you must put your hands on real-time and best-in-class automation software. Parley Pro is one of the best contract management software that can ease your legal document work and provide you with a better experience. Organizations can save themselves from unnecessary expenses because it is a centralized management solution. With it being automated, you will never miss any term clause ever.