Stuart Lancaster's side were beaten 30-3 at the Millennium Stadium in Cardiff, as the Welsh side retained their crown.
Woodward, who led the side to the 2003 World Cup, believes that the winners are a superb team.
"England were playing against a special team," he told BBC Sport.
"They've got to lick their wounds. England have got to get their heads around this and think about how they're going to tackle this Welsh team in two years' time.
"It's a positive that England got themselves into that position [of winning a Grand Slam]. Today was something special."
A crowd of more than 74,000 turned out to watch the decisive match.