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NFL Supplemental Draft Fundamentals:

The Supplemental Draft was created to allow NCAA underclassmen, who chose not to enter the NFL draft held in April, an additional chance to
enter the NFL. Often, players are unsure of taking their game to the next level and either miss the petition deadline or find themselves ineligible for
the next college football season.

The league uses a weighted three-step system to determine the order of the supplemental draft. Below are the steps in order:

1) Teams with six wins or less participate in the first lottery for the top supplemental draft picks. The team that
 posted the worst record among that group is given an advantage over the following team. This process is
 continued until the process reaches the team with the best record among the available teams.

2) The second group consists of non-playoff teams and follows the same process: worst record to best within group.

3) The third group consists of last season's 12 playoff teams and, again, follows the same system.

After the draft order is determined, each franchise submits the name of the player(s) they are interested in, as well as the round they are willing to
draft that particular player in. The team that submits the highest bid (willing to offer the most) is awarded the rights to the player. If two (or more)
teams are willing to give up the same pick from the same round, the team offering the highest pick in the round wins out.

Teams engaging in the supplemental draft and using a draft pick will forfeit their choice in the corresponding round of the next years NFL Draft.  
The following link provides a history of the supplemental draft and players chosen:

Supplemental Draft Pick History

Full Supplemental Draft History
NFL Supplemental Draft: Rules, Guidelines & Information