Despite those two results, the Ospreys can't qualify for the quarter finals ahead of their final pool game with Treviso on Sunday.
"Although it's disappointing to be out of contention before the final round of fixtures, there's no talk here of dead rubbers or anything like that," said Tandy.
"It's been a tough pool. We always knew it would be, up against some outstanding teams but we've been extremely competitive and stood toe-to-toe with the likes of Leicester and Toulouse.
"This is a young group with so many players experiencing their first games at this level and they will benefit from this season.
"We need to ensure they keep working hard, remain determined to improve and retain that desire and passion that has stood them in such good stead this season.
"If we can do that, then we can look to the future with real positivity."
For their final pool game in Italy, Tom Grabham makes his Heineken Cup debut on the wing while Lloyd Peers and Sam Lewis make their first starts in the competition.
Tandy added: "We know we're in for a tough afternoon on Sunday. Treviso are extremely physical and they will want to finish on a high after games against Leicester and Toulouse where they've done really well but ended up with nothing.
"We know for ourselves what a dangerous team they are, especially at home so we are well aware we will need to be focused and on top of our game if we are going to get the kind of performance that is needed to win there."