English giants Northampton Saints and French Champions Castres Olympique complete the Ospreys' rivals this year but Tandy insists there won't be any sense of fear within his camp.
"It's obviously a tough group but that's exciting for us at the Ospreys. We want to challenge ourselves against the best teams and we've sure got that in this group," said Tandy.
"It's something that we really can't wait for. We feel that we've got a good group of players in a decent space at the minute and we're just really excited for the challenge ahead.
"Every year you can look at it as one of the toughest groups: last year we had Toulouse, Leicester and Treviso. I just find that exciting. The tougher the group, the more exciting it is and the more it turns these guys on.
"You look at Northampton home and away, cross-border fixtures are huge; we always go toe-to-toe with Leinster so that's not something we'll fear; and you don't know where Castres will be.
"We've got to look at the positives, we're not going to be daunted by it."
The Ospreys have already shared the spoils with Leinster in an early domestic encounter in Dublin and Tandy is confident they can begin with a bang when their continental crusade kicks off at the Liberty Stadium.
Both sides will welcome back a host of British & Irish Lions tourists who missed the 29-29 draw in the PRO12, with Tandy expecting another hugely competitive and exciting encounter this time around.
"We know what a fantastic team they've got. They've got amazing individuals. They're playing under a new coach with a slightly different style but we know they're going to be hugely competitive. They come alive in these tournaments," added Tandy.
"But we're pretty confident in our own ability. We've played Leinster in a couple of finals over the past few years and had some decent results so it won't be challenge we won't be excited about. It's one that the group and the staff can't wait to get started.
"They'll be a better side and they'll bring some Lions boys back, but we'll be in the same situation. We'll be stronger and have more depth for that occasion, just as they will."