But after seeing youngsters such as Josh Turnbull, Rob McCusker and Lou Reed become influential members of his side - Davies insists there can be no excuses on the European stage this season.
"We have developed a crop of players over the last two years who are now fronting up for us," said Davies.
"It's the strongest position that I have been in since I have come back here.
"When we got here we realised we had to react to the business situation and as a result of that we had to lose quite a few senior players.
"And as a result of that we took a clear view to develop from within as much as we could, and we committed to these younger players.
"We have thrown these players in. They have developed well and now they are fronting up.
"We are moving forward and progressing all the time. There is still a lot for us to do but we are at the position now where we can compete with the top teams.
"I think we showed that in a couple of games last year. We have got real quality here. We are not making excuses anymore, not that we really did in the last couple of years. There were actual facts and reasons for where we were.
"We all love this place and we love what it stands for and we are desperate for the Scarlets do to well again and it's up to us to make sure that happens."
Elsewhere Newport-Gwent Dragons and Cardiff Blues face off against Scottish opposition as they take on Glasgow and Edinburgh respectively, while the Ospreys travel to France to take on Toulon.