Williams retired from international duty as Wales' leading try scorer in December when he was waved off by a packed house at the Millennium Stadium after scoring against Australia in his final act.
The 35-year-old subsequently announced his decision to quit club rugby at the end of this season although he will continue to work for the club.
Williams remains available for selection in the region but with the likes of Hanno Dirksen and Eli Walker impressing out wide, Tandy admits Ospreys are likely to focus on blooding their younger players.
"Shane is available for us but with him retiring at the end of the season we are looking to the future," he said.
"He has been superb by passing on this knowledge to these sorts of guys, so this is a very important period for us.
"Hanno Dirksen and Eli Walker have done very well and as an organisation we believe we need to go on with these sorts of players.
"They have been great and continued to improve so these are exciting times for us as Ospreys in this position.
"Shane will probably have one or two games and his last home game will be against the Dragons in April."