diff --git a/app/code/Magento/Inventory/Controller/Adminhtml/Source/Save.php b/app/code/Magento/Inventory/Controller/Adminhtml/Source/Save.php
index 7d1185a6c911..0f51090bdda7 100644
--- a/app/code/Magento/Inventory/Controller/Adminhtml/Source/Save.php
+++ b/app/code/Magento/Inventory/Controller/Adminhtml/Source/Save.php
@@ -134,7 +134,7 @@ private function processSave($sourceId, array $requestData)
             /** @var SourceInterface $source */
             $source = $this->sourceFactory->create();
         }
-        $source = $this->dataObjectHelper->populateWithArray($source, $requestData, SourceInterface::class);
+        $this->dataObjectHelper->populateWithArray($source, $requestData, SourceInterface::class);
         $source = $this->carrierRequestDataHydrator->hydrate($source, $requestData);
 
         $sourceId = $this->sourceRepository->save($source);
diff --git a/app/code/Magento/Inventory/etc/adminhtml/system.xml b/app/code/Magento/Inventory/etc/adminhtml/system.xml
new file mode 100644
index 000000000000..d3dae5ae364a
--- /dev/null
+++ b/app/code/Magento/Inventory/etc/adminhtml/system.xml
@@ -0,0 +1,32 @@
+<?xml version="1.0"?>
+<!--
+/**
+ * Copyright © Magento, Inc. All rights reserved.
+ * See COPYING.txt for license details.
+ */
+-->
+<config xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="urn:magento:module:Magento_Config:etc/system_file.xsd">
+    <system>
+        <section id="inventory" translate="label" type="text" sortOrder="100" showInDefault="1" showInWebsite="1" showInStore="1">
+            <label>Inventory (MSI)</label>
+            <tab>catalog</tab>
+            <resource>Magento_Inventory::inventory</resource>
+            <group id="inventory_source_carriers" translate="label" sortOrder="100" showInDefault="1" showInWebsite="0" showInStore="0">
+                <label>Source default carrier config</label>
+                <field id="use_enabled_carriers" translate="label" type="select" sortOrder="10" showInDefault="1" showInWebsite="0" showInStore="0">
+                    <label>Use Enabled Carriers</label>
+                    <source_model>Magento\Config\Model\Config\Source\Yesno</source_model>
+                </field>
+                <field id="inventory_source_default_carrier_config" type="multiselect" translate="label" sortOrder="100" showInDefault="1" showInWebsite="0" showInStore="0">
+                    <label>Specify Carriers</label>
+                    <source_model>Magento\Inventory\Model\OptionSource\CarrierSource</source_model>
+                    <can_be_empty>1</can_be_empty>
+                    <comment>Use Ctrl+click for unset value</comment>
+                    <depends>
+                        <field id="use_enabled_carriers">0</field>
+                    </depends>
+                </field>
+            </group>
+        </section>
+    </system>
+</config>
diff --git a/app/code/Magento/Inventory/etc/config.xml b/app/code/Magento/Inventory/etc/config.xml
new file mode 100644
index 000000000000..04ae8ba2145d
--- /dev/null
+++ b/app/code/Magento/Inventory/etc/config.xml
@@ -0,0 +1,16 @@
+<?xml version="1.0"?>
+<!--
+/**
+ * Copyright © Magento, Inc. All rights reserved.
+ * See COPYING.txt for license details.
+ */
+-->
+<config xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="urn:magento:module:Magento_Store:etc/config.xsd">
+    <default>
+        <inventory>
+            <inventory_source_carriers>
+                <use_enabled_carriers>1</use_enabled_carriers>
+            </inventory_source_carriers>
+        </inventory>
+    </default>
+</config>
diff --git a/app/code/Magento/Inventory/view/adminhtml/ui_component/inventory_source_form.xml b/app/code/Magento/Inventory/view/adminhtml/ui_component/inventory_source_form.xml
index e7726ee34109..c4fa763cdd1e 100644
--- a/app/code/Magento/Inventory/view/adminhtml/ui_component/inventory_source_form.xml
+++ b/app/code/Magento/Inventory/view/adminhtml/ui_component/inventory_source_form.xml
@@ -193,6 +193,11 @@
                 <select>
                     <settings>
                         <options class="Magento\Inventory\Model\OptionSource\RegionSource"/>
+                        <filterBy>
+                            <field>country_id</field>
+                            <target>${ $.provider }:${ $.parentScope }.country_id</target>
+                        </filterBy>
+                        <customEntry>region</customEntry>
                     </settings>
                 </select>
             </formElements>
@@ -201,6 +206,7 @@
             <settings>
                 <dataType>text</dataType>
                 <label translate="true">State/Province</label>
+                <visible>false</visible>
             </settings>
         </field>
         <field name="city" formElement="input" sortOrder="40">
@@ -229,10 +235,15 @@
         <settings>
             <label translate="true">Carriers</label>
             <collapsible>true</collapsible>
-            <opened>true</opened>
+            <opened>false</opened>
             <dataScope>general</dataScope>
         </settings>
         <field name="use_default_carrier_config" formElement="checkbox" sortOrder="10">
+            <argument name="data" xsi:type="array">
+                <item name="config" xsi:type="array">
+                    <item name="default" xsi:type="number">1</item>
+                </item>
+            </argument>
             <settings>
                 <label translate="true">Use global Shipping configuration</label>
                 <dataType>boolean</dataType>
@@ -253,7 +264,7 @@
             <settings>
                 <label translate="true">Shipping methods</label>
                 <imports>
-                    <link name="disabled">${$.parentName}.use_default_carrier_config:checked</link>
+                    <link name="visible">!${$.parentName}.use_default_carrier_config:checked</link>
                 </imports>
             </settings>
             <formElements>
diff --git a/app/code/Magento/Inventory/view/adminhtml/ui_component/inventory_source_listing.xml b/app/code/Magento/Inventory/view/adminhtml/ui_component/inventory_source_listing.xml
index c38f71ff5dd0..cc0d8fa8f353 100644
--- a/app/code/Magento/Inventory/view/adminhtml/ui_component/inventory_source_listing.xml
+++ b/app/code/Magento/Inventory/view/adminhtml/ui_component/inventory_source_listing.xml
@@ -174,6 +174,7 @@
         </column>
         <column name="country_id" component="Magento_Ui/js/grid/columns/select" sortOrder="80">
             <settings>
+                <options class="Magento\Directory\Model\Config\Source\Country"/>
                 <visible>false</visible>
                 <filter>select</filter>
                 <dataType>select</dataType>
@@ -182,6 +183,7 @@
         </column>
         <column name="region_id" component="Magento_Ui/js/grid/columns/select" sortOrder="90">
             <settings>
+                <options class="Magento\Inventory\Model\OptionSource\RegionSource"/>
                 <visible>false</visible>
                 <filter>select</filter>
                 <dataType>select</dataType>