There are two main ways of sharing files in SolidWorks.
The first is having the files in a network share and inserting them from their network location. The collaboration options are there to help manage files in this sort of setting.
The second way is through file management systems like PDMWorks Workgroup and PDMWorks Enterprise. With the file management system the master copy of the files reside in a central location (vault), and the software handles copying the files from the vault to your local drive. They also provide mechanisms for revision control, where you can access older versions of the file.
It is possible to have a mixture of the two methods. We have it set up where our library / toolbox files (screws, nuts, etc.) are on a network share, and our product files are in the vault.
Using a common network location is essentially free, and requires little setup. However, it requires discipline on the part of the users and fairly good communication between the users. Historically working with files over the network has been considered a potential source of crashes.
Depending on the flavor of SolidWorks that you purchased, you may already have PDMWorks, otherwise there will be added software costs. PDMWorks requires more setup, but it enforces some of the rules like only one person can have a file checked out for changes at a time. It also can maintain a history of files, making it particularly useful for a product with long development and or life, where revision tracking becomes important.
What will work best depends a lot on your users, the product you make and your company’s culture and practices. Your VAR should be a good source for advice about which method to use and help in getting it set up.
Eric