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Each vendor can have multiple locations. If order is created with vendor codes then specifying the vendor location code is also mandatory. Vendor location code is unique for a vendor and can repeat for different vendors.

What is the significance of Vendor and Vendor Locations

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While creating orders with Vendor codes, Vendor code and vendor location code is mandatory and its used to identify the sources and destination of Inward / outward orders. 

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Duplicate calls to create Customers and Vendors (Vendor) are idempotent. No changes will be made to the existing Customers or Vendors and a 200-OK response will be sent by the API 

Is Vendor Location creation mandatory and what to do if our (ERP) system don't have Vendor location code?

If you don't have VendorLocationCodes at your end then two approaches can be followed:

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