Smart manufacturing systems combine collaborative and autonomous control systems to provide optimal performance and respond to volatile demands. A key component of smart manufacturing is material management, as raw materials, work-in-progress, and finished products must be transported to the right location at the right time. However, during the production phase, it is imperative to establish an optimal traffic control scheme in order to avoid congestion and optimize material flow. This paper proposes a platooning-based control procedure implemented in a virtual agent-based manufacturing environment to increase the material flow efficiency on a manufacturing shop floor. An analysis of the production makespan and an indicator of the level of congestion in the material handling system was conducted in order to determine productivity improvements. An agent-based simulation is used to test the effectiveness of the novel platooning approach versus a traditional basic approach. A multivariate analysis of variance (MANOVA) reveals that the inclusion of a platoon-based procedure improves production performance and reduces congestion risks.