Ospreys are sitting pretty at the top of the GUINNESS PRO12 table with seven wins from as many games but suffered their season's second defeat at the hands of English opposition on Friday night.
Saracens were the visitors to the Gnoll and they left with a 21-9 triumph, Tandy's side with just three Sam Davies penalties to show for their efforts.
And before the GUINNESS PRO12 returns with a trip to Ulster's Kingspan Stadium, Ospreys will head to Bridgend on Friday night to face their fellow Welsh region.
"We play the Dragons in Bridgend on Friday and we need to get a bit better," Tandy told the South Wales Evening Post.
"We have to play a bit smarter and cut out bog-standard errors, like when two players ended up going for the same ball and we gave a penalty away and that's three points. You didn't see Saracens make those errors.
"You look at how easy they exited compared to when we were trying to get out of our own 22. There were massive differences there.
"I told the boys after the game I couldn't fault their effort and how hard they worked.
"There was a ton of effort and I was proud of that, particularly with the group being so young, but our basics weren't where they needed to be. We need to learn and not make the same mistakes again.
"I think you learn more from defeats. You just look at how efficient Saracens were. They didn't overdo it. They had a classy nine who kicked the ball pretty well and they just squeezed us, pouncing on any error and keeping the scoreboard ticking over."
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