Davies insists his side have improved defensively from last season but the Scot believes the Reds can be more menacing from free-kicks and corners at the opposite end of the pitch.
Defender Luke Chambers scored a crucial goal from a corner against Scunthorpe, and Davies feels there is more to come.
"Our set-plays were excellent against Scunthorpe recently - even the opposition manager admitted that. And, when you watch the corners and free-kicks, you can clearly see that we have done work. We have a real threat," said Davies.
"There is still a bit of slackness there in the group with regard to set-plays. Defensively we have improved immensely from last season. Attacking-wise we have work to do but we are starting to get a grip.
"We are getting much better at knowing where to run and when and with regard to the quality of our delivery, but we know we can be a major threat at set plays. We will keep working at it and now we have chance during the international break."