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Third Party Warehouse Shipping Setup - no idea how to setup dropship

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I have 10-15 suppliers who have at least three geographically spread warehouses (in different states). The location that was auto setup for my address in Shopify doesnt keep stock hence no orders will be full filled. Instead, each vendor will decide based on the order postal address which warehouse (closest) will dispatch an order. 

Shall I create multiple locations in shopify? The limit is 4-5 only on cheap shopify account plans. I believe those locations are created when I own the warehouses. I'm not.

I only plan to use two rates anyway. One is free shipping on orders over $200, and other is is flat rate $20-25 for under $200. I configured those but they are glued to my location as a dispatch.

Please advise any common sense approach for my scenario. I'm trying not to use any custom coding or Apps.



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